Iceland has abandoned its decade-long trademark dispute with Iceland as the frozen food retailer’s boss promises a “rapprochement discount” for shoppers in Reykjavík.
Executive chair Richard Walker said after the supermarket’s third legal loss he would take “the couple of hundred of grand we would have spent in legal fees in the fourth and final round in the European Union court and reapply that to a rapprochement discount to the good Icelandic people. It’s something I’m going to do.”
Walker’s idea of a rapprochement discount will most likely take the form of shopping vouchers to mark the re-establishment of a harmonious relationship between the retailer and the nation.
The Icelandic government first brought legal action against the UK supermarket in 2016 after accusing it of holding back Icelandic companies from promoting their own goods and services.
The Icelandic government had never tried to force Iceland to change its name but wanted the retailer’s European trademark for “Iceland” cancelled.
Malcolm Walker, the founder of Iceland Foods, sent a “high level delegation” to Iceland in 2016 in an effort to soothe tensions and reach an agreement. He argued that his business had registered as a company name in 1970 and “coexisted with the country called Iceland very happily ever since”.
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The government took particular issue with groceries being branded “Inspired by Iceland”.
Iceland Foods was only granted a trademark with the European Union in 2014 after several attempts. However, the Icelandic government accused the supermarket of harassing “Icelandic companies and even the Icelandic tourism board” following its attempt to pursue action against companies that used “Iceland” in their branding.
Instead, a legal battle continued with the EU Intellectual Property Office, which invalidated the Icelandic trademark in 2019. It reasoned that the supermarket cannot “reasonably trademark the name of a country that has been around since the 9th century”. Iceland appealed but lost.
The supermarket then took its fight back to court with appeals in Brussels, before the EU General Court ruled against the retailer again last year.
Walker, Malcolm’s son, said : “We lost for a third time. We’re going to throw in the towel. It’s actually fine – we don’t have to change our name.”
He said his concern was that “other people now have the ability to open shops and call it Iceland and stock Iceland products”.
The response was in stark contrast to Walker’s previous steely resolve that his family would “vigorously defend Iceland Foods’ intellectual property rights”.
Walker was recently appointed a Labour peer and the UK government’s cost of living champion by prime minister Keir Starmer.
Iceland has eight concessions in Nettó stores in Iceland, as well as more than 900 outlets in the UK.
The Icelandic government did not reply to requests for comment. – Copyright The Financial Times Limited 2026