Lidl was entitled to ask to prevent Tesco from using its Clubcard logo, London’s High Court ruled two months from the German discount company’s legal victory, which proves that the market leader the school copied its design.
In April, Tesco was found to have infringed Lidl’s trademark with the blue and yellow Clubcard logo in an attempt to “mislead” customers about price and value. The latest part in the ongoing battle after Lidl sought a ban on Tesco infringing on its trademark.
On Wednesday (June 21), Judge Joanna Smith ruled that Lidl had the right to impose the injunction, but the order would not take effect until all appeals from either retailer were resolved. If it is approved, Tesco will have to remove all evidence of the infringing logo, which could cost it up to £8 million back.
Lidl is at the top when Tesco orders the Clubcard logo to be removed
“The only sure way to end the loss Lidl is suffering from continued use [Clubcard Prices] the sign is to give the final order,” Smith said.
Tesco will have nine weeks to remove any marketing around the Clubcard Prices logo once the proceedings are over, if the retailer is unsuccessful. This reportedly includes more than eight million logos across stores as well as content used as advertisements on TV, print and online.
However, it may be a long time before we get to this point – if at all -.
Carl Steele, partner at Ashfords LLP explains: “The next step was for Tesco to seek permission from the Court of Appeal to challenge the first instance decision that Tesco had pirated, ignored and infringed on trademarks by using Clubcard logo they use”. .
“If the Court of Appeals allows it, any appeal hearing cannot take place until 12 months from now. So we may be looking at another 12 to 18 months before hearing the Court of Appeal decision.
“Of course, if the Court of Appeals does not allow an appeal (and we will probably know this this fall) then Tesco will then have only nine weeks to make changes to their logo in the door. order – but that assumes Tesco did not make a separate appeal against yesterday’s Court decision – which could happen. Bottom line – all will be silent for a few months.”
‘No effect’
In April, Tesco said it was “surprised and disappointed” by the ruling in Lidl’s favor, but stressed that it would “not affect” the Clubcard Rate program and that it would “continue to run”. . [it] exactly the same way”.
Lidl’s trademark trademark dates back to 1994, while Tesco started its Clubcard pricing program in 2019. This dispute dates back to 2020, when Lidl first raised concerns about its resemblance to a rival’s logo. compete.
An ‘own goal’ or the right decision? Experts’ reaction to Lidl’s win over TescoAlthough the April ruling was a win for Lidl, not all saw it the same way. As Geoff Stewart, head of litigation at asset management firm Stobbs told Marketing Week at the time: “Lidl has netted spectacularly in the fight against the lookalikes. “
“They have firmly established that the brand name is much less important than color and form, which consumer behavioral science has asserted for years.”
“It is important to note that this case is not about whether a customer confused Lidl and Tesco,” said Ewan Grist, partner of the Intellectual Property Team at Bird & Bird, who represents the company. Lidl in this case, also told Marketing Week.
“Rather, the issue is whether Tesco’s use of the Clubcard logo unfairly exploits Lidl’s reputation for great value by making some customers think Tesco is price matching Lidl, while Tesco doesn’t actually do any price matching,” he added.
