Lidl could steal a share of profits made from Tesco’s Clubcard scheme as a result of copying the German grocer’s logo, London’s High Court heard this week.
Back in 2020, the discount giant sued the UK’s biggest retailer after Tesco adopted a yellow circle against a blue background to promote its Clubcard Prices discount scheme.
In February, the two supermarkets traded allegations of copying brands and deceiving customers but Lidl won the case last month, with a judge ruling Tesco had “taken unfair advantage of the distinctive reputation” for low prices held by Lidl’s trademarks.
Tesco was denied permission to bring an appeal against that decision at a brief hearing on Monday, but it can apply directly to the Court of Appeal, Reuters reported.
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Tesco’s lawyers said it could be impossible to establish how much profit may be linked to the use of the logo for the Clubcard scheme, but Lidl’s legal team said it could be huge.
Lawyer Benet Brandreth said in court filings: “Tesco is responsible for around a quarter of the UK’s entire supermarket share and Lidl for approximately 7%.
“Over three years that amounts to many millions of customers and billions of pounds of turnover and profit. If even a fractional percentage of that trade is attributable to the infringement, the resulting sums are huge.”
Lidl is looking for financial disclosure from Tesco, including revenue and operating profit for Tesco as a whole and from Clubcard holders, to calculate what profit Tesco may have made from infringing its trademark.
On Monday both businesses agreed to try and resolve the issue of disclosure, after which Lidl must decide whether to seek damages or an account of profits made by Tesco.
Lidl has also asked for an injunction to prevent Tesco from infringing its trademark. Both sides agree any steps to remove Clubcard Prices logos from Tesco stores should be put on hold pending any appeal.
