A ruling by New Zealand's Intellectual Property Office (IPO) determined that the term is "not sufficiently distinct" for any one group to claim ownership.

The Tasmanian Honey Company owner and founder Julian Wolfhagen has welcomed the news of the ruling as a "common sense outcome" for the manuka honey industry.

"It's a tremendous relief, in a way, to hear the news of the ruling," Mr Wolfhagen said.

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"It's been years of torture, this ongoing dispute and discussion, when realistically, both Australia and New Zealand should be working collaboratively to strengthen the brand."

Since 2015, the Australian Manuka Honey Association (AMHA) have been battling the New Zealand MHAS in multiple jurisdictions over their attempts to trademark the term.

Mr Wolfhagen has noted the significance of the proceedings' withdrawal for them and thousands of other Australians working in the honey industry.

"The New Zealand MHAS have no exclusive claim to the term "Manuka honey", nor should they," he said.

"The manuka bush, Leptospermum scoparium, is found in southeastern Australia, including Tasmania, not just in New Zealand.

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"It does not make any sense that the Australian and New Zealand producers are fighting over naming rights, when we all have the capacity to work together. I just hope this issue is finally put to bed."

Australian Manuka Honey Association chairman Ben McKee said the group was delighted with the judgement.

"This decision is a sensible outcome that ensures Aussie beekeepers can fairly market their produce. It also sees NZ following other precedents around the world that manuka honey is a descriptive term," he said.

"Our product has a long history of being recognised as manuka honey, it is produced like the NZ product is, and it also offers the sought-after antimicrobial properties that consumers around the world value so highly. Indeed, there is research to show Australian honey has stronger antimicrobial benefits and a better taste than the NZ offering.

"The opportunities for Australian manuka honey are huge. Hopefully we can now focus on promoting this wonderful medicinal honey to the world, rather than fighting over naming rights."

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