Aldi plans to appeal a UK Court of Appeal verdict that ruled the retailer infringed the trademark of local cider maker Thatchers.
The dispute centres on Thatchers’ claims Aldi’s Taurus cloudy cider lemon “mimics” its variant and could confuse drinkers. The family-owned Thatchers launched its lawsuit against the discount giant in 2022.
A year ago, the UK High Court dismissed Thatchers’ argument, prompting the company to appeal.
In a ruling handed down yesterday (20 January), the Court of Appeal backed Thatchers’ assertion Aldi had infringed its trademark rights through the “sign” – or product imagery – on the Taurus SKU.
“In my judgment, it is plain from a comparison between the sign and the trademark that the former closely resembles the latter,” Lord Justice Arnold said.
“The inescapable conclusion is that Aldi intended the sign to remind consumers of the trademark. This can only have been in order to convey the message that the Aldi product was like the Thatchers product, only cheaper. To that extent, Aldi intended to take advantage of the reputation of the trademark in order to assist it to sell the Aldi product.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe German discount retailer claimed the latest ruling was “wrong” and said it intends to appeal.
A spokesperson for Aldi said: “Aldi offers exclusive brands as low-price alternatives to more expensive branded products. The High Court was clear that Aldi customers know what they are buying when they shop with us. We will continue to produce high-quality exclusive brands for our customers at unbeatable prices.”
Martin Thatcher at Thatchers said the business was “thrilled” at the latest verdict.
He added: “This is a victory not just for our family business, but for all businesses whose innovation is stifled by copycats.”
Justice Arnold reflected on how the dispute had caused debates among trademark experts. Some had criticised the High Court decision for failing to properly protect brand owners “against so-called look-alike packaging”, he said, while others had backed the ruling “as upholding competition and hence cheaper prices for consumers”.
Ben Evans, head of trademarks at law firm Harper James, said the Court of Appeal’s decision was significant for brand owners.
“Buoyed by the judge’s comments and armed with the relevant trademark registrations, brands can feel more confident that the courts will step in to protect their intellectual property rights,” Evans said.
“While each case will still depend on its facts, this judgment represents a levelling-up of the playing field for brand owners and would-be copycats.”
