Business

The Importance Of Trademark Registration: Lessons From Lidl V Tesco

Issue 107

Trademark registration is crucial for businesses to protect their brand identity and maintain a competitive edge. Trademarks, such as logos, names, or slogans, are the markers that set your business apart from your competitors, and are an extremely valuable asset. Protecting your trademarks through trademark registration is crucial for maintaining your brand's integrity and defending it against misuse or imitation.

A recent case, Lidl v Tesco, highlights the importance of trademark protection. The dispute centred around Lidl’s registered trademark which consists of a yellow circle, outlined in red, in the centre of a blue square. Lidl alleged that Tesco had infringed this trademark registration with its use of a similar blue-and-yellow design in connection with Tesco’s “Clubcard Prices” marketing campaign.

Lidl claimed that Tesco’s use of the similar logo could mislead customers into thinking the Clubcard prices promotion was connected to Lidl, thereby benefiting from Lidl’s reputation for low-cost products. Tesco argued that their blue-and-yellow logo was simply a commonplace type of attention grabbing signage used to communicate value or sale price information to customers, however the court sided with Lidl, ruling that Tesco had infringed Lidl’s registered trademark.

The Lidl v Tesco case emphasises the importance of being proactive about trademark registration. Without formal registration, enforcing your rights in court becomes far more difficult. Registered trademarks provide exclusive rights and allow businesses to enforce their intellectual property more effectively. Businesses should therefore prioritise registering their trademarks early and conducting thorough searches to avoid infringement issues. Monitoring the market for potential violations and enforcing trademark rights is essential to maintaining brand integrity. For those expanding internationally, trademark protection in multiple jurisdictions should also be considered.

Businesses thinking about their approach to trademark registrations, whether they have existing portfolios or are considering registering new trademarks may be able to avail themselves of the UK IPO’s IP Advance programme which provides targeted support to innovative, high growth potential SME’s.

www.heip.co.uk

1 of

Sign-up to our newsletter

  • This field is for validation purposes and should be left unchanged.