Prices aren’t the only thing Lidl and Tesco are locking horns carts over. The two supermarkets are also clashing in the aisle of intellectual property, with both brands using a yellow circle against a blue background in their branding and marketing.
The UK’s High Court has now taken the side of Lidl, ruling on Wednesday that Tesco infringed both trademarks and copyrights of its German rival, as well as attempted to “pass off” its discount prices as comparable with those of the budget chain.
In September 2020, Tesco began using a yellow circle with a blue backdrop as the logo for its Clubcard loyalty program. Lidl, whose branding also features a yellow circle with a blue background, accused Britain’s largest grocer of “riding on its coat tails” to give off the impression of low prices, which Lidl is known for.
On Wednesday, Justice Joanna Smith found Tesco guilty of “copying” and taking “unfair advantage” of Lidl’s logo for the reason of “enhancing [its] value perception,” adding that the Lidl logo is an established symbol of a “strong value proposition.”
A Lidl spokesperson responds that the company is pleased to hear that the court agrees with its stance.
With that said, it is still unclear if Tesco will have to replace the existing Clubcard logo or if it will have to pay damages. The British company has stated that it will fight the High Court’s decision.