Aldi ‘will have to change its business model’, says Thatchers’ lawyer

Aldi will have to “change its business model” following its defeat by Thatchers in a trademark court battle, the lawyer that represented the cider brand has said.

The discounter’s long-running battle with Thatchers came to a close last week, with the Supreme Court refusing the supermarket permission to appeal an earlier ruling it had infringed the brand’s trademark.

The appeal was denied on the basis Aldi did not raise an arguable point of law.

It means the Supreme Court agreed with the Court Appeal, where the judge gave “absolute clarity” on the issue, according to Thomas Chartres-Moore, head of the intellectual property at Stephens Scown.

He said it would make it harder for Aldi to make own-label products that mimic an individual leading brand, while relying on the defence that customers are not confused about what they are buying.

The Court of Appeal found in Thatchers’ favour on the grounds Aldi’s Taurus Cloudy lemon cider had been ‘riding on the coat-tails’ of the brand’s Cloudy Lemon Cider and taking unfair advantage its trademark. It did not require Thatchers to establish customers were likely to be confused.

“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 said it would also make it harder for Aldi to use its ‘like brands only cheaper’ advertising slogan because it was referenced by the Court of Appeal judge.

An Aldi spokesperson said: “We go to great lengths to ensure that all our products adhere to strict intellectual property guidelines. We think the Court of Appeal was wrong in its interpretation of the facts in 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.”