UK: Lidl could take slice of Tesco’s Clubcard profits after logo lawsuit win

Discount Retail Chain Lidl UK (owned by the German Schwarz Group) could snap up a share of profits made from Tesco’s Clubcard scheme as a result of copying Lidl’s logo, London’s High Court heard this week.

The German-owned grocer sued the UK’s biggest retailer back in 2020 shortly after Tesco adopted a yellow circle against a blue background to promote its Clubcard Prices discount scheme.

In February, the two retailers traded allegations of copying brands and deceiving customers but Lidl won the case last month, with a judge ruling Tesco had “taken unfair advantage of the distinctive reputation” for low prices held by Lidl’s trademarks.

Tesco was refused permission to bring an appeal against that decision at a brief hearing on Monday, but it can apply directly to the Court of Appeal, Reuters reported. Tesco lawyers said it could be impossible to establish how much profit may be linked to the use of Lidl’s logo for the Clubcard scheme, but Lidl’s legal team said it could be huge.

Lawyer Benet Brandreth said in court filings: “Tesco is responsible for around a quarter of the UK’s entire supermarket share and Lidl for approximately 7%. “Over three years that amounts to many millions of customers and billions of pounds of turnover and profit. If even a fractional percentage of that trade is attributable to the infringement, the resulting sums are huge.”

Lidl is seeking financial disclosure from Tesco, including revenue and operating profit for Tesco as a whole and from Clubcard holders to calculate what profit Tesco may have made from infringing its trademark.

Both businesses agreed to try and resolve the issue of disclosure, after which Lidl must decide whether to seek damages or an account of profits made by Tesco. Lidl has also asked for an injunction to prevent Tesco from infringing its trademark. Both sides agree any steps to remove Clubcard Prices logos from Tesco stores should be put on hold pending any appeal.

Read more: Lidl could take slice of Tesco's Clubcard profits after logo lawsuit win - Retail Gazette