The government has confirmed it will not be asking organisers of the 2012 Olympic Games to reconsider a logo despite demands for them to do so.
The logo has attracted widespread criticism
Culture spokesman Lord Davies of Oldham said the logo "will establish the character and identity of the Games".
Liberal Democrat Lord Redesdale asked if an open competition involving the public could not be considered.
But Lord Davies said the logo is the responsibility of the London Organising Committee of the Olympic Games.
Lord Redesdale said the negative public response to the logo could result in a loss in sales for the Olympics because much of the financing of the Olympics would rest on merchandising.
Lord Davies added: "You must at least concede one fact. The purpose of a logo is to identify and bring to everyone's attention the brand in question.
"This brand has certainly drawn the nation's attention."
But he said the government shared the concern the TV programme featuring the logo after its launch had on people with epilepsy.
He added: "It wasn't the logo itself. It was the video."
He added that those who developed the logo are taking up this matter with the company who produced the presentation.
Independent Labour peer Lord Stoddart of Swindon asked: "Why did it cost £400,000 to produce such an uninspiring logo?"
Lord Davies replied: "It may be uninspiring to some and inspiring to others.
"What is clear about the brand is that it is meant to be a multi-media attraction."
He said that out of all the bids submitted the chosen logo was the best one.
"We believe that the new London 2012 brand will establish the character and identity of the 2012 Games, nationally and internationally, and we will not be asking the London Organising Committee of the Olympic Games and Paralympic Games to reconsider it," said Lord Davies.