Iceland v Iceland: Nation takes legal action against British supermarket in war over name

Iceland's government has launched legal action against the British supermarket over the use of its name.

Its goal is to ensure "the right of Icelandic companies to use the word 'Iceland' in relation to their goods and services".

The country claims the supermarket "aggressively pursued" and won multiple cases against Icelandic companies which use the word Iceland as part of their trademark, "even in cases when the products and services do not compete".

Supermarket Iceland, which trades under Iceland Foods, holds a Europe-wide trademark registration for the word.

The country is seeking to invalidate the registration via the European Union Intellectual Property Office on the basis that it is "exceptionally broad and ambiguous in definition, often rendering the country's firms unable to describe their products as Icelandic".

Iceland's government said in a statement: "The government of Iceland is concerned that our country's businesses are unable to promote themselves across Europe in association with their place of origin - a place of which we are rightly proud and enjoys a very positive national branding.

"This untenable situation has caused harm to Icelandic businesses, especially its small and growing companies. A company or product made in Iceland or by an Icelandic company should be able to represent itself using the name of the country."

The government says it has made multiple efforts to negotiate with Iceland Foods, but the supermarket's "unrealistic and unacceptable" demands have left it with no choice but to take legal action.

When news of the lawsuit first broke in September, a spokesman for Iceland said: "Iceland Foods has traded under the Iceland name in the UK since 1970, and is today one of the UK's most recognised brands.

"We have also traded as Iceland for many years in other EU countries, and in non-EU countries, including Iceland itself."