Thatchers successful in appeal in cider dispute with Aldi

24th January 2025

Last January, Thatchers – the well-known, family-owned cider maker – were unsuccessful in their claim for trade mark infringement and passing off against Aldi concerning their competing cloudy lemon cider products. 362 days after that much-debated decision, on 20 January 2025, the Court of Appeal ruled in favour of Thatchers.

High Court Decision

Thatchers is the proprietor of a UK trade mark registration for the graphic which is printed on the front and rear of each can of Thatchers’ lemon cider (the “Mark”). Thatchers claimed that Aldi’s lemon cider product infringed their registration and, furthermore, that Aldi had engaged in passing off. The High Court decided that what was to be compared to the Mark was a single can of Aldi’s product (the “Aldi Sign”).

To the widespread disappointment of brand owners falling victim to ‘lookalike’ products, the High Court held that Aldi had not infringed Thatchers’ trade mark registration nor engaged in passing off.

For a more detailed analysis of this decision, see: Thatchers unsuccessful in cider dispute with Aldi | Kuits Solicitors

Court of Appeal Decision

The Court of Appeal, significantly, held that the first instance judge incorrectly interpreted the Aldi Sign as a three-dimensional product – a single can. The supplanted interpretation of the Aldi Sign, being the graphic which is printed on the front and back of the cans and on the front of the cardboard 4-can pack, lead to a conclusion that the similarity between the Mark and the Aldi Sign was greater than assessed by the first instance judge.

It was further held that, in part because the Aldi Sign departed from its house style for its Taurus range of ciders, Aldi intended the Aldi Sign to remind consumers of the Mark and communicate that Aldi’s product was like Thatchers’ product (but cheaper) and, therefore, take advantage of the reputation of the Mark. It was concluded that Aldi had, through riding on the coat-tails of the Mark, obtained such an advantage because it had assisted Aldi in selling its product, which was unfair because it enabled Aldi to, rather than compete with Thatchers on the merits of its own product and marketing, benefit from Thatchers’ development and marketing efforts. Resultingly, the Court of Appeal – upholding Thatchers’ appeal – held that Aldi had infringed Thatchers’ registration for the Mark.

Comment

This decision overturns a High Court judgment that caused significant alarm amongst brand owners and trade mark lawyers. It highlights that different approaches to trade mark protection and portfolio management are required to protect a brand against being taken unfair advantage of by a ‘lookalike’ product on the one hand and, on the other, more ‘traditional’ forms of misappropriation. Consider, for example, the position had Thatchers been left to rely only upon a registration for the brand name THATCHERS.

If you have any queries relating to trade mark registration or infringement please contact a member of our Intellectual Property department on 0161 832 3434.

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