Verdict: EU Court of Justice

Consumers are the loser in a Strasbourg ruling stopping Tesco supermarkets selling cut-price Levi Strauss jeans.

The UK supermarket lost the latest round in its fight with the US company after a ruling by the EU Court of Justice on Tueday.

"The court ruled that goods from outside the European economic area cannot be imported without the unequivocable consent of the trademark owner, and we think that is the right decision," said Levi's Europe chief.

The decision is the latest in the long running and very costly legal saga between the two companies. Tesco believes it should have the right to sell Levi jeans at knock down prices whereas the jeans manufacturer argues it has turned down the supermarket as an approved stockist.

Levi sells its products through 17,000 selected outlets across Europe, chosen for good customer service argues the company, price rigging argue its pro-consumer opponents.

The jeans company, famous for its iconographic 501 line, believe the ruling will allow them to preserve the quality of its brand.

"This definitive legal decision enables us to continue doing what we do best - making and marketing the world's best recognised jeans," said Joe Middleton, Levi Strauss Europe president. "We have always maintained that we have the right to decide the way in which we distribute our products to best serve our customers, and the court has confirmed that right."

Consumer representatives had supported the Tesco case hoping that a win would lead to lower prices in the high street.

"We are looking for a Tesco win because it would be good for consumers. They would then get access to branded goods at reasonable prices," said the Consumers Association.

The case returns to the UK high courts for a final decision.