Iceland Wins: EU Court Cancels Supermarket’s Exclusive Rights to “Iceland” Trade Mark
In a landmark decision, the government of Iceland has succeeded in cancelling the long-disputed "Iceland" trade marks held by the UK-based supermarket chain of the same name. The EU General Court upheld an earlier ruling by the EU Intellectual Property Office (EUIPO), concluding that a company cannot monopolise a geographic name that holds national significance.
A Battle of Names
The Iceland trademark dispute began when the Icelandic government, supported by local business groups, challenged the registration of the word "Iceland" as a trade mark by Iceland Foods Ltd, a British supermarket founded in 1970. The supermarket had successfully registered "Iceland" as an EU trade mark for a range of goods and services, including frozen foods, in 2014.
The Icelandic government argued that this registration unfairly blocked Icelandic business from accurately describing their products or services as originating from Iceland, particularly in sectors such as food, tourism, and retail, where national branding is critical.
After years of legal wrangling, the EUIPO's Board of Appeal found in favour of the Icelandic state in 2019. Iceland Foods challenged that decision at the EU General Court, the second-highest court in the EU, but the Court has now dismissed that appeal, siding once again with the government of Iceland.
National Names Must Remain Free
The EU General Court reaffirmed that geographical terms, especially country names, must remain available for use by all traders. The Court found that the word "Iceland" refers not only to a place of origin but also conveys positive associations about the quality, nature, or authenticity of certain goods and services.
Crucially, the Court noted that granting exclusive rights to such a term could prevent legitimate Icelandic companies from using their own country's name in commerce, something that would conflict with principles of fair competition and public interest.
The ruling emphasised that a trade mark should not be allowed if it consists exclusively of signs that indicate geographical origin, particularly if those signs are likely to be used by other businesses in good faith.
Iceland (the Supermarket) Responds
Following the ruling, Iceland Foods issued a statement expressing disappointment. The company argued that it has built strong brand recognition over decades and never intended to block fair use of the word by Icelandic companies.
"We have great respect for the country of Iceland and its people," the statement read, "but we believe we have the right to protect the brand identity we have developed since the 1970s."
However, critics have pointed out that the supermarket had previously enforced its trade mark rights against Icelandic companies, including food and tourism businesses attempting to use "Iceland" in their branding.
What This Means for Trade Mark Law
This decision reinforces a fundamental principle in European trade mark law: geographical names, particularly those with national or regional significance, should not be monopolised by any single business unless they have acquired a truly distinctive, non-descriptive meaning.
It also serves as a warning for businesses seeking to register place names as trade marks. Even if registered, such marks may be vulnerable to cancellation, especially if they prevent others from fairly describing the origin of their products or services.
Looking Ahead
The decision is a clear victory for Iceland's government and small businesses that rely on the nation's name as a valuable brand asset. While Iceland Foods may continue trading under its name, its legal monopoly over the word "Iceland" across the EU has now been effectively dismantled.
With geographic branding playing an ever-larger role in food, tourism, and sustainability marketing, this ruling could set a precedent for future disputes involving national or regional names.
For now, the country of Iceland has reclaimed the right to its own name and reaffirmed the principle that no company should own a country.
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