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LONDON, Dec 2 (Reuters) - The government of Iceland will proceed with legal action against Iceland Foods over the British retailer's trademark registration of the word "Iceland" after talks between the two parties failed, it said on Friday.
Last week the tiny north Atlantic island said Iceland Food's Europe-wide registration had often left Icelandic firms unable to describe their products as Icelandic and it had asked the European Union Intellectual Property Office (EUIPO) to invalidate it.
That prompted Iceland Foods to send a delegation to Reykjavik to try and resolve the dispute.
The parties met in the capital on Friday but failed to find any resolution.
Iceland's foreign ministry said that at the meeting Iceland Foods refused to relinquish exclusive control of the word "Iceland" and presented proposals that fell short of the country's expectations.
Therefore, Iceland said, it would proceed with legal action to invalidate the retailer's trademark.
"The registration of a country name that enjoys highly positive national branding to a private company defies logic and is untenable," the ministry said.
A spokesman for Iceland Foods declined to comment. (Reporting by James Davey; Editing by Elaine Hardcastle)