Aldi must ‘change its business model’ after Thatchers court loss, says lawyer
Aldi will be forced to rethink its approach to own-brand products following a trademark defeat to cider maker Thatchers
Aldi will be forced to rethink its approach to own-brand products following a trademark defeat to cider maker Thatchers, a lawyer for the drinks brand has claimed.
The Supreme Court last week refused the discounter permission to appeal a ruling that found it had infringed Thatchers’ trademark — bringing an end to the long-running legal battle.
The refusal was based on Aldi not raising an arguable point of law, effectively backing the Court of Appeal’s decision in Thatchers’ favour.
The Grocer reported that judgment gave “absolute clarity” on the issue, according to Thomas Chartres-Moore, head of intellectual property at law firm Stephens Scown.
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He said the ruling made it harder for the German discounter to continue producing own-label items that closely resemble leading branded products, while relying on the defence that shoppers aren’t confused.
The Court of Appeal ruled Aldi’s Taurus Cloudy Lemon Cider had been “riding on the coat-tails” of Thatchers’ Cloudy Lemon Cider and taking unfair advantage of its trademark. The decision did not require Thatchers to prove consumer confusion.
“This changes the landscape because it gives brands a piece of domestic law to hang their hat on,” said Chartres-Moore.
“If market leaders double down on their brand protection and take the same route as Thatchers then it is going to close a door for Aldi and they will have to rethink their business model.”
He added the ruling could also weaken Aldi’s long-running ‘like brands only cheaper’ slogan, noting that it was referenced by the Court of Appeal judge.
An Aldi spokesperson told the title: “We go to great lengths to ensure that all our products adhere to strict copyright guidelines. We think the Court of Appeal was wrong in its interpretation of the facts of this particular case.
“Aldi will continue to champion consumers by offering low-price, affordable alternatives to more expensive branded products. The courts were clear that Aldi customers know what they are buying when they shop with us.”
It comes as the retailer faces a separate trademark battle with Robinsons, which in March accused the discounter of copying the design of its Mini squash bottles with Aldi’s Sun Quench Squirty Squash.
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