In a significant legal victory, a cidermaker has successfully appealed in a long-standing trademark dispute with discount supermarket chain Aldi.
The dispute began when Thatchers, a Somerset-based cidermaker, filed a lawsuit against Aldi in 2022, claiming that Aldi's Taurus lemon cider infringed on the trademark of Thatchers' Cloudy Lemon Cider. Thatchers argued that Aldi had gained an 'unfair advantage' by imitating the taste and appearance of their product.
Thatchers contended that Aldi was misleading consumers into believing that their ciders were identical or somehow related. However, in January of the previous year, the High Court dismissed Thatchers' claims, with Judge Melissa Clarke stating there was a low degree of similarity between the products and 'no likelihood of confusion' among consumers.
Following their appeal, the Court of Appeal ruled in favor of Thatchers. Lord Justice Arnold found that Aldi had indeed infringed on Thatchers' trademark. He stated, "The inescapable conclusion is that Aldi intended the sign to remind consumers of the trademark."
Justice Arnold further elaborated, "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."
He noted that while Aldi may not have aimed to deceive or confuse consumers regarding the origin of its product, this did not negate the infringement.
Martin Thatcher, a fourth-generation cidermaker at Thatchers, expressed his satisfaction with the ruling, stating: "This is a victory not just for our family business, but for all businesses whose innovation is stifled by copycats. We're thrilled the High Court got to the core of the issue and cleared up any cloudy judgement."
In response, Aldi announced plans to appeal to the Supreme Court. A spokesperson commented, "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."
The spokesperson added, "We are disappointed that the Court of Appeal disagreed with the High Court in this case. We think the Court of Appeal's decision is wrong and we intend to appeal."