The Levis Tesco Battle

BBC NEWS | Business | Tesco defeated in cheap jeans battle
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Wednesday, 31 July, 2002, 14:24 GMT 15:24 UK
Tesco defeated in cheap jeans

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Supermarket giant Tesco has lost its landmark

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at low prices.
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The High Court has upheld a ruling in

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------------- cut price Levi jeans without permission from
Talking Point the US-based clothes giant.
------------While the court allowed
Profiles Tesco leave to appeal,

In Depth the High Street giant,
-------------
which has spent four
Programmes years fighting its case,
-------------
said it had reached the

"end of the legal road".
Tesco may have lost

their legal battle
against Levi's - but
the real loser is the
consumer
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Tesco has sold jeans at about half the price

recommended by Levi Strauss, obtaining them
from wholesalers in European countries where
they are sold more cheaply.
But Levi Strauss complained over the effects
on its brand of the cost cuts, and of the sale of
its clothes in supermarkets, launching a legal
protest viewed a test case for the sale of all
designer goods.
The European Court of Justice in November
backed Levi's argument, saying that retailers
could not sell branded goods from outside
Europe without the consent of the trademark
owner.
High Court judge Mr Justice Pumfrey upheld
this ruling on Wednesday, dismissing as
"devoid of any substance" claims that Levi
Strauss was, in trying to control the sale of its
jeans, breaking human rights laws.
Levi relief
The ruling was welcomed by Joe Middleton,
president of Levi Strauss Europe, Middle East
and Africa, who said it would protect a brand
that represented the firm's "most valuable
asset".
"For 130 years the Levi's name has been a
promise of outstanding quality and value," Mr
Middleton said
"This decision allows us to carry on keeping
that promise."
But consumer groups backed Tesco's call for a
change to European laws.
"The EU must change this anti-consumer law
Blair keeps euro options

open
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stories are at the foot
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and change it quickly," said Phil Evans,

principal policy adviser at the Consumers'
Association.
"Tesco may have lost their legal battle against
Levi's - but the real loser is the consumer."
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BBC News | UK Politics | MPs back cheaper designer goods
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Thursday, July 8, 1999 Published at 14:52 GMT 15:52 UK
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Supermarkets hope to offer reduced prices on brandnames
Restrictions on the sale of cut-price designer goods

should end, according to an influential House of
Commons committee.
The BBC's
Denise
Mahoney: "The
strongest
criticsm yet of
trademark
owners"
MPs have backed campaigns by

supermarket chains including Asda
and Tesco to end restrictions on the
'grey market' where genuine
trademarked goods are imported from
abroad to be sold within the UK at
reduced prices.
Ending controls on the grey market

would allow large retailers to buy designer brand
products at lower prices than they are currently available
in the UK and pass benefits on to shoppers.
But manufactures claim that supermarkets fail to offer the
right setting for their products and argue staff may not be
able to give customers relevant advice on their goods.
At the moment designer label goods made outside the
European Union can not be sold legally in the UK without
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the permission of the manufacturer.

A Labour member of the Trade and Industry Select
Committee, Martin O'Neill, said: "We are talking about
people being overcharged and we are talking also about
supermarkets who have identified sources of goods that
they think they can bring to the market and to their
customers at low prices."
He added that companies attempting to stop the sale of
their goods at lower prices should be "named and
shamed".
But a spokesman for the British Brands Group insisted:
"Prices are not artificially high. The UK is a very
competitive market."
'Cheaper goods'
In a report published on Thursday, the committee said:
"We recommend that the government and the European
Commission work towards the adoptions of a broad
principle of international exhaustion of trade mark rights,
allowing grey imports of goods but afford exceptional
protections to those sectors where such a principle could
be shown to have severe detrimental effects."
They said such an approach would "lead to cheaper
goods for consumers".
The committee also called for the UK Government and
the EU to look into labelling of grey goods where
products marketed under the same brand are
substantially different depending on the country of
manufacture.
MPs were particularly concerned over the labelling of
cars and motor bikes imported on the grey market to
alert consumers to the potential consequences of buying
such vehicles.
At present a European Union directive states that while
retailers can buy grey goods from unauthorised suppliers
within European Union they cannot import from outside
the EU.
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Brand court case pending

A case regarding the illegal importation of grey market
goods is currently pending in the European Court of
Justice.
Supermarkets claim trademark owners such as Levi
jeans, Calvin Klein and Prada should not have the right
to determine exactly where their goods are sold.
Tesco's commercial director John Gildersleeve said:
"This report shows that it is the law keeping some prices
up here and Tesco is right to fight for change and a
better deal for shoppers.
"Letting brands have complete control is bad news for
mums, who need lower prices when buying the latest
designer clothes for their kids," he said.
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BBC News | BUSINESS | Tesco confident in jeans battle
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Tuesday,
16 January, 2001, 23:35 GMT
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Tesco confident in jeans battle
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Health Levi Strauss does not like its jeans sold alongside groceries
Education
Tesco is confident it will win a legal fight with
Entertainment jeans giant Levi Strauss to sell cut-price

Talking Point unauthorised imports after a hearing at the
In Depth European Court of Justice.
AudioVideo
The supermarket chain claims it has saved

shoppers 42m since it started selling lowprice Levi jeans.
It wants the right to import designer goods
The BBC's
from around the world and sell them at
Nicola Carslaw discount prices to UK customers.
"Levis believe...
it does not suit
the brand image" But Levi claims its legal
real 56k
right to set standards

for the way its
trademark products
are sold were being
violated by the retailer.
A court decision is
expected by the early
summer and Tesco is
confident the decision
will go its way.
Our specialist teams

are already on the
ground in America
and Eastern Europe,
preparing for a
victory
John Gildersleeve
Tesco director

court

sales
Jeans battle in
European court
06 Aug 98 | The Company

File
Supermarkets defy
designer ban
16 Jul 98 | The Economy

illegal
08 Jul 99 | UK Politics
MPs back cheaper

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now:
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to testify
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Digital TV woes hit Pace
"Our specialist teams are already on the

ground in America and Eastern Europe,
preparing for a victory," said its director John
Gildersleeve.
"They've got some great deals lined up, and
hundreds more in the pipeline.
"All these products are favourites of British
consumers, but if we bring them into the UK
now, we could be sued. So we need the
European Court to clarify the law and stop the
brands threatening us."
Under EU trademark rules, a company can
import brand-name goods from a supplier in
another EU country.
Baked Beans
But the rules do not allow such goods to be
imported from a country outside the EU
without the manufacturer's permission.
Lawyers for the supermarket told the European
Court of Justice in Luxembourg that the
existing regulations keep prices high and stop
competition.
But Levi said it has the right to choose which
retailers sell its products.
Tesco argued that Levi is trying to prevent it
from giving consumers a better deal, by buying
products in cheaper markets such as the US
and Eastern Europe and bringing them in to
sell in the UK.
Brand image
It also said that once a product has been
bought the new owner has every right to
decide what to do with it. But that is not the
law at the moment.
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of the page.
Levi insisted the customer already has the

choice of 18,000 authorised Levi dealers
throughout Europe which guarantees good
service, quality and range.
It also said it does not suit the brand image to
sell the designer jeans alongside tins of baked
beans.
The dispute started more three years ago
when Tesco sold Levi 501s for 30 in selected
stores - 15 lower than the average shop
price.
But the European Court of Justice banned the
sale of branded goods bought through
unauthorised channels outside the European
Union - on the so-called 'grey market'.
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BBC News | BUSINESS | Tesco claims jeans victory over Levi's

Thursday,
5 April, 2001, 09:23 GMT 10:23 UK
Front Page
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Tesco claims jeans victory over

Levi's
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Education Stores offer savings on designer brands
Entertainment
AudioVideo
The BBC's
Daniel
Boettcher
"Manufacturers
of designer
goods claim
supermarket
sales tarnish the
image of their
brands"
real 56k
Alan Christie,
Levi Strauss
and David
Sawday, Tesco
discuss the
arguments for
and against
Tesco selling
Levi jeans
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By BBC consumer affairs correspondent

Daniel Boettcher
The supermarket chain Tesco is claiming a
victory in a long-running battle to be allowed
to sell cut-price designer brands in its stores.
The European Court of Justice, considering a
test case between the company and clothes
manufacturer Levi Strauss, appeared to accept
on Thursday, that traders such as Tesco should
have their interests considered.
"This is a key victory for consumers in Britain,"
Chris Leake, a spokesman for the retailer told
BBC News Online.
"Unless a British court decides the European
Court is talking nonsense, which is highly
unlikely, then we are perfectly OK to continue."
But a EC spokesman said the legal opinion was
"complex and confusing" and gave no clear
indication of how the law on trade marks
should be interpreted.
05 Apr 01 | Business
Q&A: Could cheaper

branded products be on
the way?
Tesco confident in jeans

battle

court
Internet links:
Tesco
Levi Strauss
the content of external
internet sites

now:
to testify
bills firm
profits
real 56k
"It's not immediately clear what the

implications are going to be," he said.
And Levi's itself put an entirely different
interpretation on events saying that the
European Court "has today reaffirmed the
existing right of trade mark owners to control
imports of their branded products into the
European Economic area".
It said it is only when trademark owners waive
that right that so-called 'parallel importers'
rights - such as Tesco's - have to be
considered.
"Levi Strauss, of course, has not waved its
right," the company said.
After the European Court makes its full ruling,
the case is due to go back to the UK courts.
"Levi Strauss & Co welcome this," Levi's said.
Mr Leake, for Tesco, added that the retailer
would now be looking to other markets, such
as the US, to satisfy the demand from its
consumers.
"We're convinced we can continue giving great
value for our customers," he said.
Jeans and beans
Supermarkets have been keen to branch out
beyond their traditional lines - next to the
shelves of bread and beans they are now
stocking electrical goods, mobile phones and
clothes, some from top design names.
But the manufacturers of some of those
products are not keen to see their brands in
supermarket aisles, especially as the prices are
often lower than those charged by approved
retailers.
scandals
Merck 'exaggerated'
revenue in accounts
Congress pushes
accounting reform
quest for a cure
of the page.
Levi Strauss has been

locked in a protracted
legal battle with Tesco
which has been buying
cheap, though
genuine, Levi's jeans
from outside the
European Union, then
selling them in its
stores.
You've got to be
allowed the choice
to go to a
supermarket and
save 20-30
Simon Soffe
Tesco
Tesco spokesman Simon Soffe said: "If you

want to go to a specialist shop that's great but you've got to be allowed the choice to go
to a supermarket and save 20-30.
"At the moment the brands are trying to stop
that choice - that's not right and we need to
get that changed."
But Alan Christie, from Levi Strauss, said
selling its jeans in supermarkets undermined
the brand, making it less attractive to its
customers.
"For us it's how the consumer sees Levi's jeans
when they go out shopping on a Saturday
afternoon.
"Do they get the presentation they expect to
receive, do they get the customer service
they're entitled to receive?"
In the case before the European Court of
Justice, the company argued that retailers
buying its goods from suppliers abroad and
then re-selling them without permission, are
breaking the law.
The final decision by the European Court is due
to be made later in the summer.
The matter would then go back to the British
courts.
If Tesco wins the case, the floodgates would be
open for more cut-price branded goods for the

UK consumer.
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BBC News | BUSINESS | Jeans battle goes to court

Tuesday,
16 January, 2001, 13:28 GMT
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Jeans battle goes to court
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Health Levi Strauss does not like its jeans sold alongside groceries
Education
The supermarket chain Tesco takes on the
Entertainment jeans manufacturer Levi Strauss in court over

Talking Point its policy of selling unauthorised imports of the
In Depth designer clothing.
AudioVideo

sales
Jeans battle in
European court
Tesco wants the right to import designer goods

from around the world and sell them at
discount prices to UK customers.
06 Aug 98 | The Company

File
Lawyers for the supermarket will tell the

European Court of Justice in Luxembourg that
the existing regulations keep prices high and
stop competition.
The BBC's
Nicola Carslaw
"Levis believe...
it does not suit
the brand image"
real 56k
But Levi says it has the right to choose which
retailers sell its products.
Tesco argues that Levi is trying to prevent it

from giving consumers a better deal, by buying
products in cheaper markets such as the US
and Eastern Europe and bringing them in to
sell in the UK.
Tesco argues that once a product has been
bought the new owner has every right to
decide what to do with it. But that is not the
Supermarkets defy
designer ban

illegal
MPs back cheaper

designer goods

now:
to testify
bills firm
profits
scandals
law at the moment.

Baked beans
But Levi insists the customer already has the
choice of 18,000 authorised Levi dealers
throughout Europe which guarantees good
service, quality and range.
It also believes it does not suit the brand
image to sell the designer jeans alongside tins
of baked beans.
The dispute started more three years ago
when Tesco sold Levi 501s for 30 in selected
stores - 15 lower than the average shop
price.
But the European Court of Justice banned the
sale of branded goods bought through
unauthorised channels outside the European
Union - on the so-called 'grey market'.
A court decision is expected by the early
summer.
As the case got under way, the European
Commission said a change in EU law to allow
any retailer to sell any branded goods would
not bring down prices "in the short-term".
A Commission spokesman said an exhaustive
study had showed there would be no
"significant" fall in consumer prices if the
current law on trade marks was changed.
"The 1989 trade mark directive makes it clear
that everyone has the right to trade freely
within the EU," the spokesman said.
"But it also gives manufacturers the right to
block imports of their trade-marked goods
from countries outside the EU.
"We have looked at this issue. We have
Merck 'exaggerated'
revenue in accounts
Congress pushes
accounting reform
quest for a cure
of the page.
undertaken a thorough study and we have

concluded that a change in the current trade
mark rules would not lead to a significant fall in
consumer prices in the short term."
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BBC News | Business | Cut-price Levis battle goes to European Court
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Thursday, August 5, 1999 Published at 10:53 GMT 11:53 UK
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Levi Strauss says discounts threaten its exclusive brand image
The High Court has referred a battle between

supermarket giant Tesco and Levi jeans to the European
Court of Justice.
The case is the latest clash between UK supermarkets
and designer brands over the importing of "grey market"
supplies, where products are bought at cheaper rates
from third parties rather than the manufacturers.
Supermarkets defy
designer ban

illegal
Internet Links
Tesco
Levi jeans
The clash began two years ago when Tesco sold Levi
501s for 30 in selected stores - 15 lower than the
average shop price.
Trade and Industry

Select Committee
the content of external internet
sites.
But last year, the European Court of Justice ruled that

trademark owners have the right to block cut-price
imports - a move criticised by the British government and
retailers.
The stores say buying unauthorised supplies allows them
to offer consumers big discounts, but brand owners do
not want their expensive products sold cut-price in
Tesco wants the right to slash

the prices of top brands
supermarkets.
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welcomed
Tesco says it is very pleased

with the ruling and expects
the case to be held within
two years.
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heats up
Levi Strauss said it was

confident that the trademark
owner's rights would be
upheld.
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frozen
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bill
No longer Liffe as we
know it
Tesco's Commercial Director John Gildersleeve said:

''The end is almost in sight and we can now go straight to
Brussels to say 'Help us sell designer clothes at value
prices','' he said.
France faces EU action

over electricity
Tim Larcombe, Managing Director of Levi Strauss UK,

said: "We are pleased that this case is being referred to
the European Court of Justice as this will clarify the law
in this area of 'consent' over the sale of trademarked
goods.
The growing threat of

internet fraud
He said the company would continue to oppose

unauthorised dealers who imported Levi's branded goods
into Europe without its permission.
Brown considers IMF job
The Government announced last month it would

investigate allegations that British consumers were
paying much more than their counterparts in Europe and
America.
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BBC News | WORKING LUNCH | Tesco loses cheap jeans battle
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Front Page Tuesday, 20 November, 2001, 13:54 GMT
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Tesco loses cheap jeans battle
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Alan Christie, Vicepresident of Levi's
Europe
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Don't put jeans on your shopping list...
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Jeans maker Levi Strauss has won a court

ruling to stop supermarkets selling its jeans at
very low prices.
Rob on the road
SERVICES
Daily E-mail Tesco had been importing clothing from the US
News Ticker
Mobiles/PDAs
and Eastern Europe - the so-called grey market

- and then selling it cheaper than Levi stores.
But the ruling, by the European Union's highest

Help court, means Tesco and other supermarkets
will have to look elsewhere for their supplies.
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Levi Strauss argues that big-name brands have

spent a lot of time and money building up the
cachet of their label, and should be able to
recoup that by controlling the distribution.
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The ruling comes at

the end of a three-year
legal battle which
began when Tesco
started buying Levi
jeans in the US and
selling them at half the
Internet links:
The likes of Levi's
absolutely hate
their brands being
sold in supermarkets
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Levi Strauss
Tesco
The BBC is not responsible
for the content of external
internet sites
price other UK outlets

were charging.
Gillian LaceySolymar
Consumer Affairs
Correspondent
A European directive
from 1989 means that
once goods have been made available in a
European Union country, there's nothing to
stop retailers buying and selling them how they
wish.
But goods from other regions such as the US
do not come under that legislation, and it's in
this particular area that Levi has won its
victory.
Now other designer
names could take
similar action to stop
supermarkets selling
their goods at low
prices.
Shoppers could be the
immediate losers.
Tesco had been selling
Levi 501s for about
28, compared to a
High Street price of
45 - 56.
Tesco has been selling at

nearly half-price
And it had planned to trim its price even

further with more imports from the US.
Now it will have to shop within the European
Union, where the jeans are likely to cost more.
Greater choice
Levi says the court verdict is in the interest of
shoppers.
"It's really supporting choice," European vicepresident Alan Christie told Working Lunch.
"It's telling manufacturers that because they
have continued to have control over the way
their goods and services are sold they can
continue to invest in the development of those

goods and services thereby bringing greater
choice to the consumer."
But Tesco are not giving up. They told Working
Lunch: "We will continue to sell products
bought in Europe for less. Over 150m worth
of grey goods sourced in Europe will be offered
to our customers over the next year."
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BBC NEWS | Business | Tesco defeated in cheap jeans battle

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Tesco defeated in cheap jeans

Jeans battle goes to

Tesco lifts Christmas

Levi Strauss does not like its jeans sold alongside

Supermarket giant Tesco has lost its landmark

The High Court has upheld a ruling in

Profiles Tesco leave to appeal,

which has spent four

Programmes years fighting its case,

said it had reached the

Tesco may have lost

Designer imports ruled

MPs back cheaper

But Tesco pledged to

New SEC chief pledges

"It is now time for the law itself to be

Overseas sales drive

http://news.bbc.co.uk/2/hi/business/2163561.stm (1 of 3)12/28/2006 6:21:00 PM

Oil prices push higher

BBC NEWS | Business | Tesco defeated in cheap jeans battle

changed," the retailer said.

Tesco has sold jeans at about half the price

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Blair keeps euro options

BBC NEWS | Business | Tesco defeated in cheap jeans battle

and change it quickly," said Phil Evans,

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BBC News | UK Politics | MPs back cheaper designer goods

Thursday, July 8, 1999 Published at 14:52 GMT 15:52 UK

Supermarkets hope to offer reduced prices on brandnames

Restrictions on the sale of cut-price designer goods

MPs have backed campaigns by

Ending controls on the grey market

BBC News | UK Politics | MPs back cheaper designer goods

the permission of the manufacturer.

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Children take over the

BBC News | UK Politics | MPs back cheaper designer goods

Brand court case pending

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BBC News | BUSINESS | Tesco confident in jeans battle

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Tesco confident in jeans battle

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Tesco is confident it will win a legal fight with

Entertainment jeans giant Levi Strauss to sell cut-price

The supermarket chain claims it has saved

right to set standards

Our specialist teams

http://news.bbc.co.uk/2/hi/business/1121151.stm (1 of 3)12/28/2006 6:10:24 PM

Jeans battle goes to

Tesco lifts Christmas