Nation of Iceland launches legal bid to win back its name from the supermarket brand
Government escalates cold war against supermarket giant as negotiations between country and store break down
THE ICELANDIC government is escalating its "cold war" with British supermarket chain Iceland by launching legal action in a bid to make them drop their name.
Iceland's Ministry of Foreign Affairs has confirmed the country has mounted a legal challenge against the frozen foods giant more than 45 years after it was founded.
The Nordic country and the budget food chain have had a frosty relationship for many years, but the nation has now upped the ante by involving the European Intellectual Property Office in the fight.
The government has the goal of "ensuring the right of Icelandic companies to use the word 'Iceland' in relation to their goods and services".
It claims it has made a series of attempts to negotiate with the company, and blamed the firm's "unrealistic and unacceptable demands" for the case.
Iceland says the supermarket has "aggressively pursued" and won a number of 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".
The supermarket, which trades under the name "Iceland Foods", has a Europe-wide trademark registration for the name, and Iceland the country wants to invalidate the registration on the grounds it is "exceptionally broad and ambiguous in definition, often rendering the country's firms unable to describe their products as Icelandic".
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In an official statement, the Icelandic government said: "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 spokesman for Iceland the budget food chain said in September: "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.
Iceland the supermarket and the Nordic nation have a long history of disagreements.
Collapsed Icelandic retail conglomerate Baugur held a controlling stake in the grocer until its collapse in 2009.
The stake then fell into the hands of Icelandic banks Landsbanki and Gitnir, which was later acquired as part of a management buy-out led by founder and chief executive Malcolm Walker.
Iceland, which has its headquarters in Deeside, Flintshire, has over 800 stores across the UK and employs more than 23,000 staff.
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