Iceland Foods Ends Decade-Long Trademark Dispute with Iceland

Iceland Foods has abandoned its decade-long legal battle with the nation of Iceland over the use of the name “Iceland,” with executive chair Richard Walker promising a “rapprochement discount” for shoppers in Reykjavik. Walker stated the company will redirect the funds previously allocated for a fourth legal challenge to provide shopping vouchers to Icelandic consumers as a gesture of goodwill.

Background of the Dispute

The Icelandic government initiated legal action against Iceland Foods in 2016, alleging that the supermarket chain was hindering Icelandic companies from promoting their own brands and services. While the government did not seek to force Iceland Foods to change its name, it aimed to invalidate the retailer’s European trademark for “Iceland.”

Malcolm Walker, the founder of Iceland Foods, previously attempted to resolve the tensions in 2016 by sending a delegation to Iceland, arguing that the business had been operating under the name since 1970 and had “coexisted with the country called Iceland very happily ever since.”

Legal Battles and Rulings

Iceland Foods initially secured a European Union trademark for “Iceland” in 2014 after several attempts. But, the Icelandic government accused the supermarket of obstructing Icelandic companies and even the Icelandic tourism board following its efforts to challenge the use of “Iceland” in their branding.

The EU Intellectual Property Office invalidated Iceland Foods’ trademark in 2019, reasoning that a company cannot trademark the name of a country that has existed since the 9th century. Iceland Foods appealed this decision but ultimately lost. Further appeals were made to the EU General Court, which again ruled against the retailer in the previous year.

Walker’s Decision and Future Implications

Following the third legal loss, Richard Walker announced the company would cease its legal efforts. He expressed concern that the outcome could allow other businesses to open stores using the name “Iceland” and sell Iceland Foods products. This contrasts with his earlier commitment to vigorously defend the company’s intellectual property rights.

Iceland Foods currently operates eight concessions within Nettó stores in Iceland and over 900 outlets in the UK. The Icelandic government has not yet issued a public response to the announcement.