The UK supermarket chain Iceland has formally ended its decade-long legal battle with the government of Iceland over trademark rights, executive chairman Richard Walker announced Wednesday. The company will instead offer a “rapprochement discount” to Icelandic consumers, redirecting funds previously allocated to further legal appeals.
The dispute began in 2014 when Iceland Foods secured a trademark for the word “Iceland” within the European Union, a move that prompted objections from the Icelandic government. Reykjavik argued that the trademark hindered Icelandic companies from promoting their goods and services internationally, potentially impacting exports and branding opportunities. The government launched legal proceedings in 2016, challenging the supermarket’s exclusive ownership of the trademark.
The EU General Court upheld rulings cancelling Iceland Foods’ EU trademark registration in July 2025, reaffirming the principle that geographical names should remain freely available for public use. Iceland Foods lodged a third appeal in October 2024, but Walker confirmed to the Financial Times that the company would “throw in the towel” rather than pursue a fourth and final appeal before the Court of Justice of the European Union.
“We lost for a third time,” Walker said. “It’s actually fine – we don’t have to change our name.” He indicated that the approximately £200,000 saved in legal fees would be used to provide shopping vouchers to Icelandic customers. The supermarket chain has accelerated its expansion in Iceland in recent years, including a new concessions format within Netto stores.
While the rulings do not prevent Iceland Foods from continuing to operate under its current name, they do open the possibility for other businesses to use the name “Iceland” in the EU, and to sell products originating from Iceland without facing trademark challenges from the British supermarket. The legal conflict had centered on the right to use the phrase “Iceland” within the EU, not on the supermarket’s ability to sell its products within the bloc.
The Icelandic government has not yet commented on the supermarket’s decision to end the legal dispute. It remains unclear whether the “rapprochement discount” will fully address Iceland’s concerns regarding the promotion of Icelandic goods and services abroad.
