Gucci has lost the latest bout in a trademark battle against Guess in Italy.

Guess said that the Court of Milan rejected all claims brought by Gucci, as well as cancelling some of Gucci's diamond pattern, G Logo and Flora pattern trademarks. It has also rejected Gucci's rights to the square G logo.

According to Guess, the court agreed with most of its principal arguments, ruling that the diamond pattern and floral motifs are common in the world of fashion.

In particular it said the popular Guess Quattro G logo pattern (also with a single G in the corner of the diamond) has "nothing to do" with Gucci's interlocking double G pattern, one of the principal claims made by Gucci.

In response, PPR-owned Gucci said it "strongly disagrees" with the decision, "in particular because, in Gucci's view, such a decision does not take into account that Guess' use of trademarks similar to Gucci's ones - famous, well-known and appreciated around the world - displays an unlawful and parasitic free-riding on Gucci's trademarks and, in general, on its brand image."

Gucci is set to appeal the decision, which it says is potentially dangerous for the protection of the "Made in Italy" label.

The retailer brought a similar case against Guess in New York, where it won US$4.66m in damages, as well as a permanent injunction against Guess' use of three of the four challenged designs.