Tesco lose European court battle to Levi Strauss

The European Court of Justice in a land mark judgement ruled that clothes maker Levi Strauss has the right to limit the quantity of jeans that UK supermarket giant Tesco imports from the US or Eastern Europe.

Tesco has been fighting for three years for its right to import jeans from where they are cheaper, and sell them in the UK at a discount to Levi’s own outlets.

But according to Tuesday, November 20’s ruling unauthorised retailers cannot sell branded goods from outside Europe unless the manufacturer has unequivocally waived its right to control the distribution of its products within Europe.

The ruling is likely to influence a wide range of goods being sold in European supermarkets including watches, perfume and sunglasses.

The court also confirmed that Tesco was wrong to sell Levi’s products from outside Europe without the permission of Levi Strauss & Co.

A statement from Tesco on Tuesday said: “Today’s verdict is a disappointment for customers but we will continue campaigning for better value on big brands.

Tesco Director John Gildersleeve said “We’ll carry on finding the best deals in Europe and bringing them to the UK. Customers tell us loud and clear that they want better value on big brands. We’ve already brought in some great deals, but there are hundreds that are still beyond our reach. But we’re working with our hands tied behind our backs.”

"Customers will be dismayed that once again the European Court has failed to loosen the shackles, and allow us to bring in the products they want. We’ll work tirelessly to bring customers better value. To pay 100 per cent price for 100 per cent property, and yet have no right to sell on, is an astonishing commercial decision. No rational trademark system should allow this to happen.”

However, Joe Middleton, President of Levi Strauss Europe, Middle East and Africa said: “This definitive legal decision enables us to continue doing what we do best – making and marketing the world’s most recognised jeans. We are extremely pleased that the court has established without a shadow of a doubt that Tesco has been acting illegally by importing our jeans for sale in Europe without our consent.” (AMcE)