Trademark Clash Over Cider

Trademark Clash Over Cider

London, UK – A fizzing legal battle is brewing in the Intellectual Property world as Thatcher Cider, a renowned British cider brand, locks horns with supermarket giant Aldi over an alleged Trade Mark infringement. The dispute centres around Aldi latest cider offering, which Thatchers claims closely resembles its own well-established brand, leading to consumer confusion.
On September 1, 2024 – Thatchers Cider files a lawsuit against Aldi, alleging that the supermarket ‘Somerset Craft Cider’ imitate its branding and misleads consumers.

The legal row erupted after Thatchers Cider, a Somerset-based company with a legacy dating back to 1904, alleged that Aldi’s recently launched ‘Somerset Craft Cider’ bears an uncanny resemblance to its signature Thatchers Gold. According to Thatchers, the packaging, typography, and branding elements used by Aldi create an impression that misleads consumers into associating the supermarket’s product with the heritage-rich Thatchers brand.
Aldi, no stranger to Trade Mark disputes, has countered the allegations, maintaining that its cider branding is generic and does not infringe on Thatchers Intellectual Property. The supermarket chain has a history of navigating legal tangles over product similarities, with previous high-profile cases involving Marks & Spencer’s Colin the Caterpillar cake and BrewDog’s craft beer packaging.
Thatchers main argument was that Aldi’s product could confuse customers and make them think it was connected to Thatchers, which would help Aldi unfairly by using the well-known Thatchers name. However, the High Court ruled in Aldi’s favour. While acknowledging the strong reputation and goodwill of the Thatchers brand, the court determined that the differences in the two products’ packaging such as distinct brand names and design elements were enough to eliminate any real risk of consumer confusion.
The court also accepted Aldi’s defence that its packaging was sufficiently generic and did not infringe upon Thatchers Trade Mark Rights. Many people saw this ruling as a setback for brand owners who want to challenge similar products in a market that’s becoming more competitive.
Court of Appeal Decision
In its ruling, the Court of Appeal overturned the High Court’s decision, finding in favour of Thatchers on critical aspects of the dispute. The Appellate Court addressed two primary legal issues:
1.Likelihood of Confusion:
The Court of Appeal held that the High Court had overly emphasized specific differences in the packaging and failed to give sufficient weight to the overall impression Aldi’s product created. The court concluded that the similarities in colour scheme, typography, and layout between the two products were likely to mislead the average consumer into associating Aldi’s cider with Thatchers, even if only momentarily. While Aldi may not have deliberately sought to deceive consumers, the court determined that it intentionally sought to capitalize on the established reputation of the Thatchers brand to drive its own sales, avoiding substantial marketing costs in the process. This strategy, the court found, enabled Aldi to achieve significant commercial success without the requisite investment in brand development.
2. Passing Off:
On the issue of passing off, the Court of Appeal ruled that Aldi’s conduct constituted an unjust exploitation of the goodwill associated with Thatches. The court found that Aldi had improperly benefited from the goodwill linked to Thatchers brand identity, achieving considerable sales without undertaking promotional efforts. The judgment underscored that the law of passing off protects not only against direct deception but also against actions that diminish the distinctiveness or reputation of an established brand over time.
The Court of Appeal determined that Aldi’s use of packaging similar to Thatchers created a likelihood of consumer confusion and amounted to both Trade Mark infringement and Passing off. The judgment made it clear that companies can’t use tactics that harm the uniqueness or reputation of a popular brand to get ahead in business.
Conclusion
The Court of Appeal ruling in favour of Thatchers underscores the importance of protecting the goodwill, reputation, and distinctiveness of established brands in a competitive market. By overturning the High Court’s decision, the Appellate Court emphasized that while subtle differences in branding may exist, the overall impression conveyed to the average consumer plays a decisive role in determining trademark infringement and passing off claims.
The judgment highlights that Aldi’s use of similar packaging for its Taurus Cloudy Lemon Cider, even without explicit intent to deceive, amounted to an unjust exploitation of the Thatchers brand. The decision reaffirms that businesses must not seek to leverage the reputation of established competitors for commercial gain, as such practices dilute brand distinctiveness and unfairly benefit from another’s goodwill.
This case serves as a precedent, strengthening the legal framework for brand owners seeking to defend their intellectual property rights against imitative practices, ensuring fair competition and preserving consumer trust in well-known brands.

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