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TEL AVIV-Body Shop International has closed its new store here after the Israeli Supreme Court ruled it could not use its logo in Israel.

At the crux of the dispute is local company Body Shop Cosmetics, and its owner Dr. Eli Fischer, who want the U.K. chain to stop using the Body Shop name. Body Shop International opened its first Israeli store in mid-November in Rishon Letzion, near Tel Aviv.

The dispute has a long history. Body Shop International has sought compensation from Body Shop since 1987, when the Israeli company started. The U.K. company has charged the local operation copied its trademark name and trademark brand White Musk.

Body Shop International is also suing Dr. Fischer for $1 million, claiming a breach of contract. Dr. Fischer was awarded the rights to franchise The Body Shop in Israel in 1990, but ended this relationship when he bought Body Shop Cosmetics three years later.

LONDON-Computer games sold in the U.K. will soon be required to disclose on their packaging whether or not they contain advertising, according to new regulations adopted by the country's Advertising Standards Authority. The new rules, which take effect this month, are in response to complaints from parents who objected to advertising in games purchased for their children. Ads are becoming more prominent in computer games such as Nintendo's Bikermice, in which Mars Inc.'s Snickers are fed to motorcyle-riding mice.

ROME-Italian advertisers, agencies, media buyers and Publitalia, the media division of commercial TV network owner Fininvest, forged a voluntary agreement last month to reduce the number of spots on TV gradually over the next two years.

Rules now permit six-minute, 22-spot breaks with competing advertisers. The agreement would prohibit competing products within one break and would gradually shorten the breaks, limiting them to 14 spots in 41/2 minutes from April through September; to 12 spots in four minutes, after October; and to nine spots in three minutes after April 1996.

The move is welcomed by an industry frustrated for years over clutter and competing products shown during ad breaks.

Marco Testa, president, Armando Testa, said the anti-clutter agreement could cut TV advertisers from 2,000 to 800.

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