Image source, Getty/Alamy

By Tom Espiner

Business reporter, BBC News

Discounter Lidl has won a trademark battle against the UK's biggest supermarket chain Tesco.

The High Court ruled that Tesco's Clubcard logo copied Lidl's logo, which both use a yellow circle on a square blue background.

Lidl said Tesco had infringed its copyright, letting Tesco "take unfair advantage" of Lidl's "reputation for great value".

Tesco said it was "disappointed" by the ruling and that it intended to appeal.

Discounter Lidl started its lawsuit in 2020, shortly after Tesco started using the logo to promote its Clubcard discount scheme.

It argued that Tesco deliberately copied its trademark to deceive customers into thinking its prices were comparable.

Judge Joanna Smith said in a written ruling on Wednesday that Tesco had "taken unfair advantage of the distinctive reputation" for low prices held by Lidl's trademarks.

However, she said that Tesco had not been seeking "deliberately to ride on the coat tails of Lidl's reputation", as Lidl had argued.