A Swedish court has ordered candy maker Mars to stop selling M&Ms in the Scandinavian country, at least not with the customary lower-case letters it uses on the packaging and on the colourful chocolates.

The Svea Court of Appeal said Wednesday it ruled against Mars in a trademark dispute with Kraft Foods, which sells chocolate-covered peanuts under the Marabou brand with a single "m" on the packaging.

It said Kraft has exclusive rights to the trademark in Sweden.

However, it added that using the upper-case M&Ms, as Mars does in its corporate communications, doesn't constitute a trademark infringement in Sweden.

Mars said: "We have always believed no confusion exists" between the two products and that it would "assess the next steps for our beloved brand in Sweden."