Cloudy with a chance of copycats: Thatchers wins Court of Appeal round against Aldi

Big news in the legal tussle between cider heavyweight Thatchers and supermarket chain Aldi! The Court of Appeal has overturned the High Court’s earlier dismissal of Thatchers’ trade mark infringement claim. This is a big win for brand owners trying to shield their intellectual property from copycat competitors.

If you caught my previous article, you’ll remember that the High Court initially sided with Aldi, deciding that shoppers were unlikely to mix up Aldi’s Taurus Cloudy Lemon Cider with Thatchers’ Cloudy Lemon Cider. That decision leaned heavily on evidence around consumer perception. But now, the Court of Appeal has taken a different view, ruling that Aldi’s design did infringe on Thatchers’ trade mark by taking unfail advantage of its reputation.

What the Court of Appeal said

Lord Justice Arnold found that Aldi’s packaging was just too similar to Thatchers’. He concluded that Aldi deliberately designed its product to evoke a link with Thatchers, aiming to give shoppers the impression that Taurus was a similar but cheaper alternative. This, according to the court, allowed Aldi to ride on the coat-tails of Thatchers’ hard work in building its brand.

The key takeaway? Competition is great, but there’s a line - and Aldi crossed it.

Lessons for brand owners

This case is a reminder of why it’s so important for brands to go beyond registering just their names or logos. Thatchers’ case was bolstered by the fact that their packaging, its overall “get-up”, was distinctive and carried significant goodwill. Investing in a robust trade mark strategy that includes key design elements can be a game-changer.

Another interesting point was Aldi’s departure from its usual packaging style. The Court of Appeal saw this as a red flag, reinforcing the idea that mimicking a single product’s design can backfire. For competitors, the lesson is clear: stick to your house style or be ready to explain your choices.

Shifting focus in trade mark law

One of the big shifts here is how the Court of Appeal focused less on consumer confusion and more on Aldi’s intentions and the broader impact on Thatchers’ reputation. This signals growing attention to brand reputation and the concept of “unfair advantage” in trade mark law.

What’s next for copycat packaging?

This ruling could mark a turning point in how the UK handles copycat packaging. The message is loud and clear: deliberately riding on the coat-tails of established brands won’t fly, especially when it’s a calculated move to cash in on someone else’s success.

As my esteemed old tutor, Peter Vaughan from Nottingham Law School, commented, this kind of decision might just encourage brands to rethink their benchmarking practices and get more creative with their product designs.