Tesco has lost a High Court appeal after a judge ruled that the supermarket’s Clubcard Prices logo does infringe Lidl’s trademark.
It follows the High Court ruling in 2023 that the branding – a yellow circle on a blue square – had “‘passed off’ the supermarket’s goods as being “as good value as Lidl”.
The Court of Appeal backed the finding that Lidl’s trademark had been infringed, although it did overturn a decision on copyright infringement.
A Lidl spokesperson said: “Last year, The High Court ruled that Tesco’s Clubcard logo was copied from ours and infringed our trademark rights, allowing them to unfairly benefit from our longstanding reputation for value while misleading its customers.
“Despite this, Tesco prolonged the dispute by appealing, deceiving customers for another year. Therefore, we are delighted to see that the Court of Appeal has now agreed with the High Court that Tesco’s use of its Clubcard logo is unlawful. We expect Tesco now to respect the Court’s decision and change its Clubcard logo to one that is not designed to look like ours.”
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A Tesco spokesperson said: “Our customers always tell us just how important Clubcard Prices are to giving them great value – and it’s been a key reason why we’re consistently the cheapest full-line grocer.”
“We are disappointed with the judgment relating to the colour and shape of the Clubcard Prices logo but would like to reassure customers that it will in no way impact our Clubcard Prices programme.
“Clubcard Prices, irrespective of its logo, will continue to play a central role in rewarding our Clubcard members with thousands of deals every week.”
Obsborne Clarke IP Partner Richard May said he did not believe Tesco would win another appeal and pointed out Lidl might have successfully developed a “blueprint” in how to stop lookalike and copycat brands.
May added: “The next and final appeal is to the Supreme Court, but Tesco will need to seek specific permission from the Supreme Court’s Appeals Committee for that and it’s unlikely that will be granted as there’s no a major point of legal principle at stake.
“The irony is that Lidl has developed a possible blueprint in how to successfully stop lookalike brands. If you can show that your trade mark or get up conveys a particularly specific message, for example around value, that has been shown to be protectable.”
It is not the first time a leading supermarket has been taken to court over copyright violation allegations. Earlier this year, the Court of Appeal dismissed Aldi’s appeal over a previous ruling that stated discounter copied M&S’s light-up festive gin bottle design.
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Tesco boasts of it’s market share and it’s place at the top but underpays it’s staff and plasters ALDI and LIDL branding across it’s store rather than stand behind it’s own name. Embarrassing.