Coca-Cola in a fizz after claims that SodaStream trashes its image

It has come to light that Coca-Cola in South Africa has sent a cease-and-desist letter to SodaStream, claiming that the latter had infringed its trademarks and was engaging in unfair competition. The action related to SodaStream’s use of discarded Coca-Cola containers in an outdoor marketing campaign intending to make a point about how environmentally friendly its own products are. The matter raises some interesting questions about exhaustion of rights, as well as best course of action when an offensive approach could have an adverse effect on brand perception.