Tata Tea sues HUL over tea process patent

Tata Tea, the world's second largest tea maker, has sued Hindustan Unilever, India's largest fast moving consumer goods firm, over a patent granted by the Indian government for the process of making instant tea from cold water.

HUL claims its parent company, Unilever, owns the invention and has already patented it in Europe and the United States.

Following an appeal filed by Tata Tea challenging the patent, the Bombay High Court referred the petition to the Appellate Tribunal of the Indian Patents Office last week.

Tata Tea's contention is that the process of making tea has been known to Indians for centuries and is not an invention and cannot be patented in India where consumption is the highest in the world.

The patent was granted to HUL by the Indian government in 1997. Tata Tea has sued the Anglo-Dutch company on two counts: the process itself and on the instant tea product made from cold water.

When contacted, an HUL spokesperson said, "The invention relates to a method of treating cold water with soluble solids derived from tea leaves. The said patent was also granted by the US Patent Office and the European Patent Office long ago."

A Tata Tea spokesperson declined to comment saying the matter is sub-judice. Analysts say that with Tata Tea and its subsidiary Tetley launching a slew of products in the flavoured and niche tea segment, any patent owned by a business rival could slow their growth plans.

The Rs 10,000 crore Indian tea industry is growing at a scorching pace of 15 per cent a year. Both Tata Tea and Hindustan Unilever's Brooke Bond brands are targeting the Indian market, which is the world leader in terms of consumption, production and exports.

The country accounts for 31 per cent of global production. With consumption patterns changing, analysts say, new products would hold the key for growth.