Tesco v Lidl wars: Lidl scores victory in Clubcard logo fight

Lidl has scored a victory in a High Court fight with Tesco over the use of a yellow circle logo.

Tesco has said it intends to appeal after Lidl scored a victory in a High Court fight over the use of a yellow circle logo.

A judge said on Wednesday that she had found for the German discount supermarket on claims of trademark infringement, passing off and copyright infringement.

Mrs Justice Joanna Smith oversaw 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: “We are surprised and disappointed by the decision today in relation to the claim brought by Lidl against our Clubcard Prices logo.”

She added: “We intend to appeal.”

Mrs Justice Smith said Lidl had made allegations of infringement of registered trademark rights in “Lidl’s logo devices”, passing off and infringement of copyright.

She said Lidl’s complaint concerned what it described as the “use by Tesco of an identifier for its Clubcard Prices promotion”.

“Essentially, Lidl says that Tesco is seeking deliberately to ride on the coat tails of Lidl’s reputation as a ‘discounter’ supermarket known for the provision of value,” said the judge.

“It is Lidl’s case that the Clubcard Prices promotion was adopted by Tesco as part of a campaign that was designed to improve Tesco’s ability to compete with discounter supermarkets such as Lidl.”

She added: “Lidl contends that the deception of Tesco’s customers is not accidental.”

Tesco argued that pursuant to the “Clubcard Prices initiative”, it used the “sign” in “various guises, always with text overlaid” and “always as a signifier of its Clubcard Prices promotion”.

Mrs Justice Smith said she had found for Lidl on claims of trademark infringement, passing off and copyright infringement.

Tesco had counterclaimed and the judge said she had made a finding in favour of Tesco on its counterclaim.

The judge said: “Tesco pursue a counterclaim alleging that some of the Lidl trademarks are liable to be declared invalid on the grounds that they were registered in bad faith, and/or that they should be revoked for non-use and/or that they have no distinctive character.”

She said she had found in favour of Tesco on its “counterclaim of bad faith”.