Tesco has removed the blue and yellow logo used to promote its Clubcard loyalty scheme after losing an appeal against a ruling that it copied Lidl’s design (rebranding could cost millions of pounds) ) has been abolished.
Legal experts said Lidl was entitled to seek compensation for trademark infringement, which could result in a further multi-million pound bill for Britain’s biggest supermarket.
Last year, Tesco was found guilty of “misrepresentation” for infringing Lidl’s trademarks and misleading shoppers into believing that products under its Clubcard pricing scheme were offered at the same or lower price than Lidl products. He was appealing the High Court’s decision. .
The controversy began when Tesco began using a yellow circular design on a blue background to promote offers available to members of its Clubcard loyalty scheme. Lidl’s main logo follows that design, adding a red outline to the circle and brand name.
In a judgment published on Tuesday, the judges said Tesco’s appeal for trademark infringement and passing off should be dismissed, but agreed with the High Court’s view that there had been no copyright infringement.
Tesco has the right to escalate the case to the Supreme Court, but it is understood that it will accept the Court of Appeal’s ruling and update its logo in the coming weeks.
A Tesco spokesperson said on Tuesday: “While we regret the ruling regarding the color and shape of the Clubcard Prices logo, we would like to reassure our customers that it does not impact our Clubcard Prices programme. I would like to have it,” he said.
A Lidl spokesperson said: “Last year the High Court ruled that Tesco’s Clubcard logo was copied from our logo, infringed our trademark rights and detracted from our long-standing reputation for values while misleading customers.” “The court ruled that the company was able to benefit the public.” Nevertheless, Tesco deceived customers and appealed, extending the dispute for another year.
“We are therefore pleased that the Court of Appeal has agreed with the High Court that Tesco’s use of the Clubcard logo is unlawful. We hope that the logo will be changed to something that does not resemble the logo.
Court of Appeal Judge Lewison said he had supported the High Court’s judgment with “unconcealed defiance” and said he found elements of the original judgment “astonishing”.
After newsletter promotion
He added: “It’s clear that the main message Tesco wanted to get across was that consumers could get better prices by joining Clubcard.” at tesco than non-participating consumers.
“Despite Tesco’s desire to differentiate itself from Lidl and promote the values of its own, highly distinctive brand, it was found liable for trademark infringement and misrepresentation.”
John Coldham, intellectual property partner at law firm Goring WLG, said: “Lidl will be pleased with this result. Lidl has a reputation as a discounter offering products at low prices and there is a court finding that Tesco has adopted that scheme. His Clubcard for price comparisons price logo.
“The Court of Appeal was openly displeased with the earlier judge’s finding that this was a price comparison with Lidl, rather than a price comparison with its own ‘non-Clubcard transaction’ prices; It was not something they were satisfied with, and it could be changed on appeal.”
