(CNN) -- Toy manufacturer LEGO, famous for its small plastic stackable bricks, is not allowed to register one of them as its trademark, the European Court of Justice has ruled.
The Danish company was granted a trademark for a three-dimensional image of a red eight-stud brick in 1999, for use throughout the European Union.
Canadian toy manufacturer Mega Brands, which makes similar plastic bricks, argued that LEGO violated trademark legislation, and the European Court of Justice in Luxembourg ruled in favor of Mega Brands on Tuesday.
"This was the court of final instance, and we have no option but to note the court's ruling," said Peter Kjaer, the head of LEGO's Intellectual Property Section.
The ruling cannot be appealed.
The issue was whether the famous LEGO brick served a technical function. European law says companies can trademark graphic images like words, designs, the shape of their goods and packaging -- but trademarking a product's shape, if that shape is "necessary to obtain a technical result," is not allowed, the court said.
CNN
