Tesco loses appeal over Lidl trademark infringement

Tesco, the UK's largest retailer, faced defeat in an appeal regarding a trademark infringement case brought against it by the privately-held limited assortment discounter Lidl, it emerged on Tuesday.

The long-running dispute centred on Tesco's use of a yellow circle on a square blue background in its ‘Clubcard Prices’ loyalty discount campaign.

Lidl’s logo, which it has used since 1973, is primarily made up of a yellow circle on a square blue background.

The legal battle began in 2020, Reuters reported, when Lidl accused Tesco of mimicking its distinctive logo, alleging that the act was intended to mislead consumers by suggesting a similarity between the two brands.

After a trial at the High Court in London, it was determined that Tesco had unfairly benefited from Lidl's well-established reputation for offering low prices, infringing on Lidl's trademark rights.

Seeking to reverse that verdict, Tesco appealed, but the Court of Appeal upheld the initial ruling, confirming that Tesco's promotional graphics infringed on Lidl's trademark.

However, in a partial victory for Tesco, the Court of Appeal did overturn one aspect of the lower court's decision, ruling in favour of Tesco on the claim of copyright infringement.

At 1129 GMT, Tesco shares were down 0.19% at 287.26p.

Reporting by Josh White for Sharecast.com.