Lidl has accused Tesco of copying its distinctive logo to promote Clubcard Prices in a High Court dispute set to cost the supermarket rivals £2.35m.
The discount supermarket claims that Tesco is using the background of Lidl’s trademarked logo – a yellow circle on blue background with a thin red border – in a bid to “ride on the coattails of Lidl’s reputation as a discounter.”
Describing the background as a ‘wordless’ trademark, Lidl is looking to ban Tesco from using it to promote Clubcard price cuts instore.
As part of the pre-trial hearing, Lidl presented the High Court with survey evidence showing that a number of people had identified the yellow circle on blue background as having a connection to Lidl.
The judge, Justice Joanna Smith, found in Lidl’s favour and said the survey evidence would be admissible at trial.
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“In short, Lidl contends that Tesco’s use of a new sign in their ‘Clubcard Prices’ marketing is an infringement,” she said.
Lidl’s lawyers will be arguing that the UK public associates the ‘wordless mark’ with Lidl, and that by using the sign in connection with its discount prices, Tesco intends them to “call to mind” Lidl’s business.
Defending itself against the claim, Tesco described the ‘wordless mark’ as a “figment of Lidl’s legal imagination”.
“It does not exist in the real world… Lidl has never used the ‘wordless mark’ and never intended to use it”.
Tesco’s lawyers contested that Lidl’s survey results were inadmissible because the participants were asked leading questions, including which company’s brand it reminded them of.
The case will go forward to trial although a date is yet to be announced. The trial is expected to cost Tesco and Lidl around £1.2m each.
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