The fast food giant has been battling a Kuala Lumpur-based restaurant called McCurry, which serves Indian food and has a smiling chicken logo, in the Court of Appeal in Malaysia.
Two years ago McDonalds won a High Court case against McCurry, but earlier today (Tuesday) a panel of three judges at the Federal Court unanimously overturned the ruling and dismissed the case.
The owners of McCurry had insisted the Mc prefix stood for Malaysian chicken.
McDonalds, which has around 150 outlets in Malaysia, was ordered to pay 10,000 Malaysia Ringgits (£1,700) costs to McCurry.
that during the court hearings McCurry argued that McDonald's could not claim exclusive rights to the use of Mc as that prefix was extensively used around the world as surnames, particularly by people of Scottish origin.
The court case has prevented the owners of the family-run McCurry from expanding but they told reporters they will now focus on growing their business.
