Portuguese retailer Sonae has won a legal battle with retail giant Carrefour regarding the use of the Continente brand in Spain, following a ruling by the Spanish Supreme Court.
The decision, which cannot be appealed, now gives Sonae the right to use the brand in the country, should it wish to, according to reports.
'Bad Faith'
Spanish daily Cinco Días reported that Carrefour had previously accused Sonae of 'bad faith' and 'unfair competition' over the use of the Continente brand in Spain and demanded that the brand's rights be maintained. However, Carrefour has not used the brand in Spain since 2000.
In its ruling, the Supreme Court rejected the appeal filed by Carrefour, which sought to challenge the decision of a previous body that ratified the banner as being owned by Modelo Continente.
Created by Promodès in Spain, the Continente brand expanded into Portugal through a partnership with Sonae. When Promodès and Carrefour were merged in 2000, Sonae kept the rights to use the brand in Portugal, and later registered it in Spain.
In 2008, Carrefour went to court to claim ownership of the Continente brand. The Commercial Court of Madrid rejected the claims of the French company, as would be the case with the appeal brought before the Provincial Court.
In the last chapter of a story that has lasted for over a decade, the Supreme Court ratified the decision of the Provincial Court, recognising "the legitimacy" of Modelo Continente to "allege the expiry of the mark [due to] lack of use".
No Immediate Plans
Speaking to Portuguese newspaper Jornal de Noticias, Sonae's CEO, Cláudia Azevedo, said that although the group had won "the legal battle" over the Continente brand in Spain against Carrefour, it does not plan "in the short-term" to open hypermarkets in Spain.
She added that the group wants to grow and gain market share in a profitable and sustainable way in markets where it is present.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
