Tesco’s Appeal Fails in Trademark Dispute with Lidl Over Clubcard Branding
In a trademark dispute with discount competitor Lidl, Tesco has faced a setback as its appeal was unsuccessful. The disagreement centered on Tesco’s use of a yellow circle against a blue background in its Clubcard branding, which Lidl argued infringed upon its own trademark.
Last year, the High Court ruled that Tesco had exploited Lidl’s reputation for offering low prices unfairly through its introduction of the Clubcard Prices discount scheme. Although the judge did not find evidence of deliberate intent to capitalize on Lidl’s image, the ruling favored Lidl’s position.
While the Court of Appeal upheld the infringement finding, it overturned a decision in Tesco’s favor regarding copyright. Lidl’s main logo features a yellow circle on a blue background, which Tesco’s Clubcard branding resembled.
Lidl initiated the case in 2020 shortly after Tesco launched its discount scheme as an extension of its existing Clubcard program. A spokesperson for Lidl welcomed the Court of Appeal’s decision, urging Tesco to respect the ruling and update its Clubcard logo to differentiate it from Lidl’s.
In response, Tesco announced plans to modify its logo, with changes expected to be implemented in the coming weeks. Despite the disappointment with the judgment, Tesco assured customers that the Clubcard Prices program would remain unaffected.
The outcome underscores the significance of branding and trademark protection in the retail industry, highlighting the competitive landscape and legal complexities involved in safeguarding intellectual property rights.
