Tesco has been forced to make a huge change to its Clubcard logo after losing a High Court battle with rival supermarket chain Lidl.
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.
READ MORE: Tesco warns thousands of shoppers about major change today
A Lidl spokesman said after the ruling: "We are pleased that the court has agreed with us", while a Tesco spokeswoman said the retail giant intends to appeal.
She added: "We are surprised and disappointed by the decision today in relation to the claim brought by Lidl against our Clubcard Prices logo."
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".
The judge continued: "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. 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".
The judge said there had been "no deliberate intention positively to evoke Lidl". But she said that did not mean the design "was not copied with the focus being on the message that a blue and yellow background would convey for the Clubcard campaign".
She said Lidl had relied upon its "trademark rights" in relation to a logo which included the word "Lidl" and a logo without that word.
Tesco had counterclaimed and alleged that "some of the Lidl trademarks" were liable to be declared invalid on the grounds that they were "registered in bad faith", or "should be revoked for non-use and/or that they have no distinctive character".
The judge found that in 1995 a "wordless mark" had been registered "in order to use it as a weapon to secure a wider legal monopoly than it was entitled to, with no genuine intention to use it". She said that was "sufficient to amount to bad faith".
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here
READ NEXT:
Emmerdale's Mark Charnock wished well as he leaves UK
Gogglebox Julie Malone supported by Emmerdale star after heartfelt tribute to Tom
ITV Coronation Street's Ellie Leach declares love for co-star after night out in Liverpool
Matalan fans praise 'beautiful' and 'flattering' £12.50 dress
