Lidl may seek portion of profits from Tesco Clubcard Prices following legal victory

Lidl may seek a share of any profits made by Tesco’s Clubcard scheme as part of a lawsuit over copying the German discount grocer’s logo.

Lidl last month won a case after suing Tesco in 2020 over the UK-based company’s adoption of a yellow circle against a blue backdrop to promote clubcard prices. A judge ruled that Tesco had "taken unfair advantage of the distinctive reputation" of the Lidl branding for low prices.

At a subsequent hearing at London’s High Court on Monday, a lawyer for Lidl said that it was impossible to establish how much profit may be linked to the use of the logo but argued that it could amount to a significant figure based on Tesco’s market dominance.

The lawyer argued that Tesco represents around a quarter of the UKs supermarket share, and that “if even a fractional percentage of that trade is attributable to the infringement, the resulting sums are huge”.

Lidl has sought financial disclosure from Tesco to calculate the amount of profit that may have been made from the infringement. Both supermarkets agreed to resolve the issue of disclosure, with Lidl then set to decide whether to seek damages or a portion of the profits made by Tesco.

While both parties have agreed that any steps to remove Clubcard Prices logos from Tesco stores should be put on hold pending any appeal, Lidl is asking for an injunction to prevent Tesco from infringing on its trademark.

At the hearing, Tesco was refused permission to bring an appeal against the April case, but can apply directly to the Court of Appeal.

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