Iceland takes legal action against Iceland over name dispute in lengthy eight-year case

Iceland Foods has renewed its efforts in a long-standing legal dispute with the nation of Iceland, a case that has persisted for eight years.

This month, the British supermarket chain, Iceland Foods, initiated a new appeal at the General Court of The European Union situated in Luxembourg.

The company is contesting a 2022 decision that confirmed a 2019 verdict, which resulted in the loss of its EU trademark protection.

The appeal marks another chapter in the ongoing legal saga with Iceland, which began in 2016 when the country objected to the supermarket’s attempt to prevent Icelandic businesses from using the name in product marketing.

“It would mean that Icelandic companies could possibly not use the word Iceland in their trademarks to designate the products they’re selling,” explained Margrét Hjálmarsdóttir, an attorney at the Icelandic Intellectual Property Office, in 2022.

The 2022 ruling doesn’t prohibit the supermarket from selling its products within the EU; however, it bars the retailer from restricting other producers from also utilizing the name Iceland.

On October 16, Richard Walker, the executive chairman, appeared before the General Court of The European Union in Luxembourg.

According to reports from The Grocer, this is the third instance of legal proceedings, and the company would have a final opportunity to appeal if it loses this round.

Walker remarked on LinkedIn: “It’s a fun headline and a seemingly quirky case…but for me personally and our family business it’s a really important issue.

“We have always understood our name to depict ‘land of Ice’ rather than making any reference or insinuation to Iceland as a country.

“And we of course will protect our business and identity – but have never tried to stop Icelandic businesses from using ‘Iceland’ descriptively to promote their products.”

In 2022, Walker told Metro.co.uk: “Our business is family-owned and was named ‘Iceland’ Foods by my mother, the late Lady Walker.

“We have traded successfully under our name in the UK since 1970, and today it is one of the UK’s most recognized brands. We have traded as Iceland in a large number of EU countries and in non-EU countries, including Iceland itself.

“We had sincerely hoped that we would be able to avoid last week’s hearing and reach an amicable agreement.

“While we will vigorously defend Iceland Foods’ intellectual property rights where there is any risk of confusion between our business and those of another business, this would not restrict Icelandic producers from describing goods or services as coming from Iceland.”

In response to the 2019 ruling victory, Iceland’s foreign minister Guðlaugur Þór Þórðarson commented: “I celebrate this result, although it in no way comes as a surprise to me, as it goes against common sense that a foreign company could file exclusive rights on the name of a sovereign country.

“This is a significant victory which means a great deal to Icelandic exporting companies.”

The legal proceedings are anticipated to extend over several more years.