A NORTHERN Ireland company has been temporarily blocked by the High Court from supplying VG branded goods to new outlets in the Republic of Ireland.

Mr Justice Thomas Smyth also restrained John Henderson (Ireland) Ltd, of Newtownabbey, Co Antrim, from expanding the range of VG marked goods it supplies to existing Vivo sales outlets in the south.

Mr Hugh Gallagher SC, for Musgrave Ltd, the major Dublin-based wholesale cash and carry suppliers, told the court his client had sole use of the VG trademark in the Republic.

He said Hendersons, which had sole use of the mark in Northern Ireland, had infringed his client's rights by supplying VG goods to seven southern outlets and had plans to expand its Vivo stores in the Republic to 50 before 1998.

Mr Richard Nesbitt SC, who appeared with Mr Michael Cush for Hendersons, claimed Musgrave's had lost VG trademark rights to a large number of previously protected products due to lack of genuine use of the mark over the last 10 years.

Ms Anne Dunphy, director of Super Valu Centra Distribution Ltd and Super Valu Supermarkets Ltd, both subsidiaries of Musgrave Ltd, told the court it came to Musgrave's attention in late 1994 that a small number of goods bearing the VG mark were being sold at Vivo Donohoe's supermarket at Belturbet, Co Cavan. When Musgrave's had threatened proceedings, Hendersons had sought to buy the VG marks for the Republic of Ireland and had been told they were not for sale.

Mr John Agnew, chairman and managing director of Hendersons, said the VG mark had been diluted in the Republic by the addition of the trademark Supervalu to it and, by 1986, the VG mark had been dropped altogether from Supervalu and Centra shopping trademarks. Use of the mark had since been very limited without any real desire to use it commercially.

Ms Louise Carey, a William Fry solicitor and registered trade mark agent, said it was clear that Musgrave's had not made genuine commercial use of its trade mark registrations since 1986. Their use of the mark had been sporadic, minimal and token, designed only to attempt to preserve its rights in its existing registrations and not in accordance with the Trade Marks Act.