Tesco has been told to stop using a yellow circle in its promotions after a High Court judge ruled against the grocery chain in a case brought by discount rival Lidl.
The German supermarket sued Tesco for trade mark infringement in 2020 after the FTSE 100 group started to incorporate a yellow circle against a blue background in its "Clubcard Prices" discount scheme.
Judge Joanna Smith said in a written ruling that Tesco had "taken unfair advantage of the distinctive reputation" for low prices held by Lidl, though the accusation the grocer had done so deliberately was dismissed.
Tesco had counterclaimed that Lidl registered its logo without its name as a “legal weapon” and had no intention of using it as a trademark.
A Lidl spokesperson said in a statement: "We are pleased that the court has agreed with us and that it will now order Tesco to stop using the Clubcard logo."
Legal disputes between the major supermarket chains have become increasingly common as Lidl and its fellow German discounter Aldi have made relentless inroads into the UK market, where Tesco remains the market leader.
In February, M&S won a 12-month legal battle with Aldi about copyright infringement on gin bottles with LED lights.
That followed a writ against Aldi in 2021 over its chocolate cake 'Cuthbert' in what was dubbed the 'The caterpillar wars'.
Shares in Tesco rose by 0.9% to 275.8p.