Lidl and Tesco are fighting in the Supreme Court over the yellow circle logo

Supermarkets Tesco and Lidl have started a lawsuit over the use of a yellow circle logo.

German discount chain Lidl says a trademark and copyright infringement has been committed, while Tesco has filed a counterclaim.

Lidl uses a yellow circle in its main logo and Tesco uses one to highlight offers for members of its Clubcard scheme.

A judge began overseeing a trial at the High Court in London on Tuesday.

Supermarket logo battle

German discount supermarket Lidl uses a yellow circle in its main logo (Andrew Matthews/PA)

Ms. Judge Joanna Smith was shown images of logos, including a yellow circle, surrounded by a red ring, containing the word “Lidl”; a yellow circle, surrounded by a red ring, without words; and a yellow circle with no red border and the words “Club Card Prizes” in the center.

Attorney Benet Brandreth KC, who leads Lidl’s legal team, said the “protection available for Lidl’s core trademark” “is at the heart of this claim”.

Hugo Cuddigan KC, who heads Tesco’s legal team, said that in order to establish infringement, Lidl would have to convince the judge that “creating a yellow circle requires sufficient artistic skill and labor to justify the author’s own intellectual creation. forms”.

He said no.

Ms Justice Smith will hear from senior supermarket staff and consumers.

Mr Brandreth told the judge in a written summary of the case: “The crux of this claim is the protection available for Lidl’s core trademark.

“Lidl has registered trademarks for the brand with text and for the wordless brands.

“As is clear, the wordless mark is the device on which the Lidl name appears.

“Lidl says the device is distinctive for its services and goods, apart from the Lidl name.”

He added: “Lidl, through its massive use, has generated tremendous reputation and goodwill in both the text and wordless brand.

“That reputation and goodwill is specific to Lidl being a supermarket that offers value, meaning quality goods at low prices.

“The complaint concerns Tesco’s use of an identifier for its Clubcard Prices promotion, which started in September 2020.”

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Tesco is embroiled in a High Court battle over a yellow circle logo it uses for Clubcard promotions that Lidl claims is a trademark and copyright infringement (Chris Ison/PA)

Mr Cuddigan told the judge in a written court summary: “The core of the dispute concerns trademark infringement, and the main mark Lidl relies on is the registered trademark for the well-known Lidl logo, which Lidl calls the ‘mark with text’. ”

He said Lidl “also took care” of registering the background of that logo – the “wordless mark”.

“Tesco says the wordless mark is invalid because it has never been used, it lacks distinctive character and any application for registered wordless marks is made in bad faith,” he said.

“It is established that Lidl used the wordless mark only or not at all by using it within the mark with text.

“Lidl’s infringement claim itself relates to Tesco’s use of a series of icons used to identify its Clubcard prize promotion.”

He said the red ring was not on the Clubcard signs and added: “Accordingly, the highlight infringement case would be based solely on the reproduction of a yellow circle.

“Lidl would have to convince the court that creating a yellow circle involves sufficient artistic skill and labor to encompass the author’s own intellectual creation.

“It does not.”

The hearing ends next week.

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