Tesco has lost its appeal to overturn a court ruling which said that the supermarket chain infringed Lidl’s trademark over the use of a yellow circle on a square blue background.

A high court ruling in April 2023 found Tesco guilty of copying Lidl’s logo to promote its Clubcard loyalty scheme. The judge found that Tesco had infringed Lidl’s trademark and had taken "unfair advantage" of consumer perception tha Clubcard prices were the same or lower than at Lidl.

This latest development should be a definitive end to the case which was brought by Lidl in December 2020, when it asked the court to order Tesco to stop using the logo.

Tesco, which remains as the UK’s largest supermarket with a share of nearly 28 per cent, had previously said that removing all of the infringing logos would cost it nearly £8 million.

While the Court of Appeal turned down the trademark infringement appeal, it ruled favour of Tesco’s appeal against a finding that it had infringed Lidl’s copyright.

A spokesperson for Lidl said: "We expect Tesco now to respect the court's decision and change its Clubcard logo to one that is not designed to look like ours."

A Tesco spokesperson confirmed that the company would update the clubcard logo shortly, adding: "We are disappointed with the judgement relating to the colour and shape of the Clubcard Prices logo but would like to reassure customers that it will in no way impact our Clubcard Prices programme.”

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