US-based grocer Target has entered formal mediation over whether it can use the Target name in Canada.

The retailer is in a dispute over the rights to the name with Toronto-based Fairweather, which argues it bought the Canadian rights to the Target name in 2001 from retail group Dylex. Fairweather claims to have operated a Target Apparel store in Toronto since 2005, and that it has additional locations under the banner in place and planned for other cities. A Federal Court trial is scheduled to begin in November 2012 if a settlement is not reached.