Suntory Holdings Ltd. lost a patent dispute with rival Asahi Breweries Ltd. on Thursday, with the Tokyo District Court rejecting its demand for a halt to production and sales of Asahi's nonalcoholic beer.

Suntory had sought the suspension of Asahi's Dry Zero, which was relaunched in September 2013, alleging that it infringed a Suntory patent application filed in November 2012 and approved in October 2013.

"The Suntory patent represents a technology that can be easily invented based on other products and should be considered invalid," presiding Judge Koji Hasegawa said, endorsing Asahi's argument.

Suntory's All-Free and Asahi's Dry Zero are competing for the top share in the expanding nonalcoholic beer market.

Suntory filed the suit against Asahi in January after they failed to resolve the dispute through talks.