The popular German discount retailer Lidl has won a major lawsuit against Tesco after the brands battled over the use of a yellow circle on a blue background.
The decision was made at London's High Court, seeing Lidl claim a victory against one of its industry rivals.
Lidl sued the British retailer in 2020 shortly after Tesco adopted the yellow circle logo to promote its popular 'Clubcard Prices' scheme which allows customers to make savings on purchases.
The Tesco logo was used to promote items benefiting from the price drops as well as the scheme more generally.
Judge Joanna Smith, who issued the High Court ruling today (Wednesday, April 19), said that Tesco had "taken unfair advantage of the distinctive reputation" enjoyed by Lidl.
However, the judge was quick to reject the claim that Tesco had acted deliberately.
Lidl 'pleased' by High Court ruling but Tesco says it will appeal decision
A Lidl spokesperson said of the ruling: "We are pleased that the court has agreed with us and that it will now order Tesco to stop using the Clubcard logo."
However, a spokesperson for Tesco said they would appeal the decision, telling reporters: “We are surprised and disappointed by the decision today in relation to the claim brought by Lidl against our Clubcard Prices logo.”
They added: “We intend to appeal.”
Brand protection lawyer describes Tesco and Lidl ruling as a 'landmark' case
Charlotte Duly, who specialises in brand protection, said: “A yellow circle on a blue background has spawned a multi-million pound intellectual property dispute, highlighting the enormous value companies see in their branding.
“Lidl relied on survey evidence to show consumer perception of their wordless logo.
“Tesco objected to this and whilst undertaking a survey that complies with the requirements set down in case law can be difficult and onerous, leading to an increase in costs for both parties, the survey was admitted into the proceedings.
“Lidl has won as the court agrees that Tesco has taken unfair advantage of the reputation in Lidl’s logos, even if this was not deliberate – a landmark decision between two major brands.
“From both a general interest perspective and a legal point of view, there are a number of very interesting issues raised in this case and it will be interesting to see whether this judgment triggers more cases of this kind.”
