LONDON (Reuters) - Nestle
The Swiss company overturned a decision from October 2012 which said Cadbury could trademark its particular shade of purple, used on products such as its "Dairy Milk" bars.
The decision allows Nestle and other chocolate makers to use the colour for their packaging.
Three judges at the Court of Appeal in London ruled that the trademark Cadbury applied for "lacks the required clarity, precision, self-containment, durability and objectivity to qualify for registration".
A spokesman for Cadbury said it was considering whether to appeal.
Cadbury is part of Mondelez International
Kraft had bought Cadbury in 2010 for $19.6 billion in one of the largest European food and beverage deals.
(Reporting By Christine Murray; Editing by Pravin Char)