Ethical, which makes coffee capsules that can be used in Nespresso machines, said in a statement that it had suffered losses of at least 150 million euros ($174 million) since 2010 as a result of the move.
Nestlé, the world's leading food company, has a lion's share of the multibillion-dollar single-serving coffee market.
Nestle is accused by ECC of modifying the Nespresso machines to keep competitors' capsules out of them with a "harpoon" device in its new Pixie range which jams the capsules.
ECC said this move went against its patent.
The company added that a decision by the Paris court would only apply to the ECC patent violation in France, but it could launch similar legal action in other countries.
Nespresso in an email to AFP denied any patent infringement and said it would fight the case in court.
In June last year, ECC won a legal suit against Nespresso in France when a Paris trade tribunal ruled against the giant in an unfair competition suit filed in 2012.
It ordered Nespresso to pay 500,000 euros to ECC and 40,000 euros more to cover legal fees.
Jean-Paul Gaillard, chairman and chief executive of Ethical Coffee, helped create the single-dose coffee market as chief executive of Nespresso.
He then launched the cheaper Ethical brand to counter Nespresso, which is aimed at more top-end consumers.
After a sluggish start following its launch in 1986, Nespresso suddenly took off in the late 1990s, fuelled by an advertisement blitz featuring Hollywood superstar George Clooney.
NESPRESSO
Ethical Coffee sues Nespresso over patent
Swiss firm Ethical Coffee Company said on Monday that it had lodged a complaint in a Paris court against Nestlé for patent infringement with its Nespresso coffee machines.
NESPRESSO
Switzerland’s Nestlé seals deal to market Starbucks coffee
Nespresso maker Nestlé on Tuesday said it has sealed a deal to market the products of US coffee giant Starbucks around the world, outside of its cafes.
Swiss food giant Nestlé, which also produces Nescafe instant coffee, had announced in May it would pay $7.15 billion (€6.13 billion) for the rights to market Starbucks coffee globally.
Under the deal, some 500 Starbucks employees in the United States and Europe will join Nestlé, the Swiss company said in a statement.
We’ve closed our deal with @Starbucks to market its consumer packaged goods and foodservice products, bringing together the world’s most iconic coffee brands: https://t.co/zTvbIWnGEA pic.twitter.com/hBzm6UA3VU
— Nestlé (@Nestle) August 28, 2018
“With Starbucks, Nescafe and Nespresso we bring together the world's most iconic coffee brands,” Nestlé CEO Mark Schneider said.
“The outstanding collaboration between the two teams resulted in a swift completion of this agreement, which will pave the way to capture further growth opportunities,” he added.
Read also: Swiss giant Nestlé makes $2.8 billion sweet deal with Ferrero
According to the statement, the deal will significantly boost Nestlé's portfolio in North America.
Bloomberg News said Nestlé has struggled in the US for years.
Under Schneider's leadership, Nestlé has made coffee a key priority in its growth strategy, particularly in the US.
Since the CEO took over in January 2017, the group has bought a majority stake in California-based high-end brand Blue Bottle Coffee and acquired Texan brand Chameleon Cold Brew.
Starbucks CEO Kevin Johnson said his firm is also set for a major boost under the deal.
“Bringing together the world's leading coffee retailer, the world's largest food and beverage company, and the world's largest and fast-growing installed base of at-home and single-serve coffee machines helps us amplify the Starbucks brand around the world while delivering long-term value creation for our shareholders,” Johnson said.
Please whitelist us to continue reading.