Battle for colours: Lidl has succeeded in court to make the British retailer Tesco change the Clubcard logo
UK’s biggest supermarket loses appeal against ruling that it infringed German discounter’s trademark.
Tesco will stop using its Clubcard logo in its current form and carry out a costly rebranding after losing a court case against Lidl.
On 19 March this year, the supermarket chain lost an appeal against a ruling last year that it had infringed the German discount retailer’s trademark rights by using a yellow circle on a blue square to advertise its loyalty discount scheme, following a long-running trademark dispute.
Tesco will update its Clubcard Prices logo in the coming weeks, a person familiar with the company’s thinking told the Financial Times.
On 19 March, the court stated that Tesco’s goal was to promote the value of its own brand, but in the process “it pleaded guilty to trademark infringement”.
Lord Justice Lewison, quoting a Supreme Court judge in an unrelated case, said: “If I could have found a way to avoid that result, I would have done so. But the difficulty is that the factual findings of the trial judge, however surprising they may seem, are not open to challenge. In view of these findings, I am reserved. . . Acceptance of the judge’s conclusion [on trade mark infringement and issuance – FT] cannot be in breach of the law. It is with undisguised reluctance that I agree . . that Tesco’s appeal should be dismissed”.
However, the court allowed Tesco’s appeal against the finding that it had infringed Lidl’s copyright. Following the decision, Tesco said: “We are disappointed with the decision regarding the colour and shape of the Clubcard Prices logo, but would like to reassure customers that this will not affect our Clubcard Prices programme in any way.”
Lidl said it was delighted with the outcome and accused Tesco of “dragging out the dispute by appealing”. “We expect Tesco to respect the court’s decision and change its Clubcard logo to one that does not look like ours,” the company added.
Source – Financial Times