Lidl has scored a victory in a High Court fight with Tesco over the use of a yellow circle logo. A judge on Wednesday said, in a ruling, that she had found for Lidl on claims of trademark infringement, passing off and copyright infringement.
Mrs Justice Joanna Smith had overseen a hearing at the High Court in London earlier this year.
Lidl uses a yellow circle in its main logo while Tesco uses a yellow circle logo to promote a Clubcard scheme. A Lidl spokesman said, after the ruling: “We are pleased that the court has agreed with us.”
A Tesco spokeswoman said the company was "surprised and disappointed” by the ruling, but said they would be appealing the decision. Tesco had made a counter-claim during the yellow circle battle with Lidl and the judge said she had made one finding in favour of Tesco – on a “counter-claim of bad faith”.
A Tesco spokeswoman said in a statement: “We are surprised and disappointed by the decision today in relation to the claim brought by Lidl against our Clubcard Prices logo. Clubcard Prices has always been about offering great value to our Clubcard customers, across thousands of products, as part of our commitment to keeping the cost of the weekly shop as affordable as possible. Nothing in today’s decision changes that.
“This claim brought by Lidl was just about the colour and shape of the Clubcard Prices logo. The judge’s ruling concluded that there was no deliberate intent on Tesco’s part to copy Lidl’s trademark. It has no impact on our Clubcard Prices scheme, which we will continue to run in exactly the same way. We intend to appeal.”
A Lidl GB spokesman said: “We asked Tesco to change their Clubcard logo, but they refused, making it necessary to bring this case. Having seen the evidence, the court has now ruled that Tesco’s Clubcard logo was copied from Lidl’s logo, and it infringes Lidl’s trademark rights and copyright.”
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A lawyer who specialises in “brand protection” issues has described the ruling as a “landmark”. Charlotte Duly, who is based at law firm Charles Russell Speechlys, 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.”
