Iceland Launches Legal Action Against Iceland Foods Over Name Dispute

25 Nov 2016 --- The Icelandic government has launched legal action the British grocery chain Iceland Foods over the use of its name. In an unusual move, the government of Iceland is challenging Iceland Foods on behalf of its business and people, arguing that the frozen food retailers' exclusive ownership of the European-wise trademark registration for the word Iceland was inhibiting the country’s companies from promoting goods and services overseas.

The row first arose in September this year but has now taken a more serious tone with the Iceland government launching legal action, saying the current situation is “untenable”.

Iceland's ministry for foreign affairs said that Iceland Foods had “aggressively pursued and won multiple cases against Icelandic companies which use ‘Iceland’ in their representation or as part of their trademark, even in cases when the products and services do not compete.” 

“The Icelandic government’s legal challenge at the European Union Intellectual Property Office (EU-IPO) seeks to invalidate this exclusive registration on the basis that the term ‘Iceland’ is exceptionally broad and ambiguous in definition, often rendering the country’s firms unable to describe their products as Icelandic.”

“Over the past years Iceland has made multiple efforts to negotiate with Iceland Foods with the hope of reaching a fair solution and avoiding legal action,” the statement added.

“These conciliatory efforts have unfortunately been met with unrealistic and unacceptable demands by the supermarket chain leaving Iceland with no choice but to proceed with a legal resolution to the situation.”

Iceland Foods, which was founded by entrepreneur Malcolm Walker, who owns the business along with Brait, the South African investment group, said: “We very much regret that the government of Iceland has apparently decided to take legal action over the use of the name Iceland.”

The retailer said it would fight the claim and argues that no “serious confusion or conflict” has been caused.

Iceland Foods has around 1.8 percent share of the UK food market. It focuses on frozen foods, such as prepared meals and vegetables.