(Bloomberg) -- Tesco Plc is trying to trademark a new logo for its Clubcard loyalty program after losing an appeal ruling that said its previous design was deceptively similar to rival supermarket Lidl’s brand.
Britain’s largest grocer filed a trademark application at the UK Intellectual Property Office in April, having failed in March to overturn the previous year’s court ruling.
The German discounter successfully argued that Clubcard’s logo — featuring a yellow circle on a blue background — infringed its copyright, which gave shoppers the impression of discount prices.
Tesco filed two designs in April using a yellow rectangle on top of a blue rectangle and containing the words “Clubcard Price” or “Clubcard Prices.”
Tesco is awaiting a decision on its trademark application. The new Clubcard logo is already being used in its stores and online.
It usually takes three to four months for a trademark to be granted, according to the Intellectual Property Office.
A spokesperson for Tesco declined to comment on the application.
More than 22 million British households have a Clubcard, according to Tesco, after the cost-of-living crisis convinced shoppers to seek out lower prices. Almost three-quarters of shoppers in the UK are Clubcard users, while only half use Sainsbury’s Nectar card, according to a survey by consumer group Which? in June.
The intellectual property authority refused an application Tesco made in 2011 to trademark “Clubcard,” arguing the word alone was “devoid of any distinctive character” and “commonly used by third parties.”
Lidl has been gaining market share over traditional UK supermarkets with its cheap pricing. Sales at the discount grocer grew 7.8% in the 12 weeks to Aug. 4, outpacing Tesco’s growth of 4.9%, according to analysis by research company Kantar. Its market share has climbed above 8% as it narrows the gap to private equity-owned Morrisons.
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