Target, the US discount retailer, will face restrictions on using its distinctive red and white bulls-eye trademark in the UK - and potentially the rest of Europe pending other hearings - after the US retail chain lost its four-year battle to wrest ownership of the logo from Music Choice, a British-based digital music provider.

The UK regulator ruled last week that Music Choice, which registered the bulls-eye trademark in 2001, was the legal owner of the logo and had exclusive rights to it, which in a move that could create difficulties for Target’s branding should it expand into the UK and Europe.