Iceland Wins Trademark Battle Against UK Supermarket Chain

After a decade-long legal dispute, the government of Iceland has successfully defended its claim to the exclusive use of the name “Iceland,” forcing UK supermarket chain Iceland Foods Limited to relinquish its trademark rights. The resolution comes after Iceland Foods suffered its third legal defeat in July 2025 and chose to end the legal battle rather than pursue a final appeal.

The Decade-Long Dispute

The conflict began in 2016 when the Icelandic government initiated legal action against Iceland Foods, arguing that the supermarket chain’s exclusive trademark registration for the word “Iceland” hindered Icelandic companies from promoting their goods and services internationally . The government contended that geographical names should remain freely available for public use.

EU Court Rulings

The EU General Court consistently sided with Iceland, upholding rulings that cancelled Iceland Foods’ EU trademark registration. In July 2025, the court reaffirmed that geographical names must be accessible for public use . Iceland Foods had appealed previous decisions, but ultimately exhausted its legal options.

“Rapprochement Discount” for Icelandic Shoppers

Richard Walker, executive chairman of Iceland Foods, announced the company would forgo a final appeal to the Court of Justice of the European Union. Instead, the supermarket will allocate the approximately £200,000 in potential legal fees to a “rapprochement discount” for Icelandic shoppers . This discount is expected to take the form of shopping vouchers redeemable at Iceland Foods stores.

Iceland Foods’ Future

Despite losing the trademark battle, Iceland Foods will be allowed to continue operating under its current name. Walker stated that the company doesn’t need to change its name, but expressed concern that others could now open stores using the name “Iceland” and sell similar products .

About Iceland Foods

Iceland Foods Limited, which similarly operates under the name The Food Warehouse, is a British supermarket chain headquartered in Deeside, Wales . Founded in 1970, the chain initially specialized in frozen foods but has since expanded its offerings to include a wider range of groceries. In 2022, Iceland Foods reported revenues of £3.555 billion and employed 28,853 people .