German-based discount supermarket Lidl has won the trademark lawsuit against UK supermarket chain Tesco.

Lidl initiated the lawsuit against Tesco in 2020 after the UK retailer started using a design of a yellow circle on a blue square background to advertise its “Clubcard Prices” discount programme.

London’s High Court has ruled that Tesco’s Clubcard logo copied Lidl’s logo.

The Clubcard Price offer is implemented in many Tesco stores to advertise the programme, sometimes close to discounted goods.

Judge Joanna Smith ruled that Tesco had “taken unfair advantage of the distinctive reputation” for affordable prices offered by Lidl’s trademarks.

However, Lidl’s claim that Tesco had “the deliberate subjective intention of riding on Lidl’s coat tails” was dismissed by the judge.

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By GlobalData

Responding to the ruling, a Lidl spokesperson said: “We are pleased that the court has agreed with us and that it will now order Tesco to stop using the Clubcard logo.”

Tesco stated that it would appeal the decision, which a representative said was “just about the colour and shape of the Clubcard Prices logo.”

In a statement, Tesco expressed surprise and disappointment at the decision, adding that it “has no impact on our Clubcard Prices scheme, which we will continue to run in exactly the same way.”

According to Tesco, its Clubcard scheme is used by some 21 million households and has 11.7 million app users.