Aldi may be forced to change how it develops its own-label products after losing a trademark battle with cider brand Thatchers, according to lawyers.

A long-running dispute came to a close last week after the Supreme Court denied Aldi permission to appeal a ruling that it had infringed Thatchers’ trademark with its Taurus Cloudy Lemon Cider.

The ruling upheld an earlier judgment from the Court of Appeal, which found that Aldi had unfairly taken advantage of the reputation of Thatchers’ Cloudy Lemon Cider.

The court agreed that Aldi’s product had “ridden on the coat-tails” of Thatchers’ branding, even without evidence that customers were confused.

Thomas Chartres-Moore, head of intellectual property at law firm Stephens Scown, said the outcome could significantly affect Aldi’s approach to product development.

“This changes the landscape because it gives brands a piece of domestic law to hang their hat on,” said Chartres-Moore, reported The Grocer.

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“If market leaders double down on their brand protection and take the same route as Thatchers then it is going to close a door for Aldi and they will have to rethink their business model.”

He added that the ruling could also challenge Aldi’s long-standing ‘Like Brands Only Cheaper’ advertising strategy, which was referenced in the Court of Appeal’s judgment.

The decision is being seen as a major win for brand owners looking to protect the distinctiveness of their products in a crowded retail market, particularly where own-label rivals mimic their design or style.

An Aldi spokesperson said: “We go to great lengths to ensure that all our products adhere to strict intellectual property guidelines. We think the Court of Appeal was wrong in its interpretation of the facts in this particular case.

They added: “Aldi will continue to champion consumers by offering low-price, affordable alternatives to more expensive branded products. The courts were clear that Aldi customers know what they are buying when they shop with us.”

Thatchers’ victory has been welcomed as a potential turning point in how lookalike own-label products are regulated under UK trademark law. It is not the first time Aldi has been drawn into a legal dispute over alleged ‘copy cat products’.

Previously the German-founded supermarket chain faced legal action from fellow grocer M&S after being accused of copying its ‘Colin the Caterpillar’ cake, and then again over its light-up gin bottles.

Elsewhere, rival discounter Lidl has also previously been accused of copying confectionery brand Tony Chocolonely’s products.