The High Court yesterday ruled that a decision made by the
European Court of Justice (ECJ) in November did not conflict with
either domestic law of Community law. The ECJ had ruled that the
retailer was not allowed to source Levi jeans outside the European
Economic Area and sell them at low prices without the brand owner’s
consent.
Tesco bought jeans from wholesalers in the US, Canada and
Mexico, countries where they are sold more cheaply. The jeans were
then sold in the UK at about half the price recommended by Levi
Strauss. The US-based manufacturer took legal action against Tesco,
claiming that the cost cuts and the fact that its clothes were sold
in supermarkets affected its trade mark-protected brand. The
European Court accepted Levi’s argument.
Tesco argued that the ECJ’s ruling meant that the EU’s Trade
Mark Directive and its Community Trade Mark Regulation were invalid
to the extent to which the court considered that they entitled a
registered trade mark owner to prevent importation of its goods
from other countries, because they infringed basic principles of EU
and English law.
The High Court yesterday dismissed Tesco’s claims after
considering the provisions of UK and EU trade mark legislation. Its
decision gave Tesco the right to appeal. However, the retailer said
it has reached the “end of the legal road”, and that “it is now
time for the law itself to change.”
