Justice Anthony Besanko of the Federal Court handed down a decision on Friday dismissing Coca-Cola's claim Pepsi's waisted glass bottle infringed its trade mark.The Federal Court released the judgment to the public on Wednesday.

Coca-Cola sued PepsiCo back in October 2010 over the shape of Pepsi's glass bottle.

Coca-Cola alleged Pepsi infringed on its trade mark by selling its Pepsi and Pepsi Max products in a bottle shaped like its well-known "contour" glass bottle. Pepsi denied its bottle's shape and silhouette were substantially identical with or deceptively similar to Coca-Cola's bottles.

Coca-Cola Amatil's spokeswoman said it was disappointed by the decision, but it has not yet reviewed the judgment to decide whether to take next step in making an appeal.

"The judgement is extremely disappointing. For more than a century, The Coca-Cola Company has carefully developed and protected our intellectual property including our trademarks, patents, and copyrights.

"These are among our most valuable assets and we have taken appropriate steps and actions to protect them where necessary. We are yet to review the judgement before considering our next steps."

PepsiCo was unavailable to comment.

The decision comes as Coca-Cola is experiencing decrease in soft drink consumption, especially among young people. Coca-Cola Amatil's profit in Australia fell more than 20 per cent in the last two years.

In a similar case in New Zealand, the High Court of New Zealand in December last year dismissed Coca-Cola's claim that New Zealand's bottler and distributor of PepsiCo Frucor infringed its trade mark. The court found although both Coca-Cola and Pepsi bottles had a "waist", they were not sufficiently similar to make out a claim. The decision is subject to an appeal.

King & Wood Mallesons intellectual property lawyer Bill Ladas said Coca-Cola may have considered it had a better case in Australia because back in 1999 it successfully sued All-Fect for producing a bottle-chaped, cola flavoured confectionary.

"The outcome alone shows how difficult it is to enforce Coca-Cola's silhouette mark against a similarly shaped bottle," Mr Ladas said.

"Once we see the judgment we will know whether the fame and iconic nature of Coca-Cola's silhouette was seen as a factor reducing the risk of confusion as against Pepsico's use of its Carolina bottle."

In Australia there are 363 registered trademarks for bottles, including the bottles for alcoholic brands Cointreau and Bundaberg, water brands Voss and Nutrient Water and mouthwash brand Listerine.