After being accused of Chinese ownership, and colluding with the Prime Minister in the demonetization scheme, Paytm is now facing a trademark infringement case. US-based e-wallet platform PayPal has accused Paytm of using similar color scheme in their logo as theirs. PayPal has filed a trademark infringement complaint with the Indian Trademark office, claiming that Paytm had no reason to do so if it did not intend to gain from PayPal s global reputation and use it to grow its own user base. Also Read - Best online gaming platforms to play multiple games: Paytm First Games, PlayerzPot and moreAlso Read - Internet down: Zomato, Paytm, Disney+ Hotstar, Amazon, Myntra, many other global services suffered massive outage
In the report filed by PayPal, the company points out at two things in Paytm logo, which are allegedly copied from the formers. PayPal points out at the dual blue color scheme that Paytm uses, which it claims is adopted in entirety.” Second, it points out the use of the word Pay at the beginning of the logo name, which has a high recollection value and makes the brand name sound very similar to PayPal s. Also Read - Zomato IPO: How to invest via bank, Zerodha, and Paytm Money
According to a report by Hindustan Times, the PayPal notice read, (Paytm) slavishly adopted the two-tone blue colour scheme of PayPal in its entirety. While the first syllable in each mark is in dark blue colour, the second syllable adopts a light blue colour Further, both marks begin with the term PAY which consumers tend to remember more than the second syllable, with the marks being of similar length. BGR India reached out to Paytm for response on the same, and we are awaiting a reply. ALSO READ: CBI registers FIR against 15 Paytm customers for duping the company of Rs 6.15 lakh
Further, in case you are wondering why PayPal has filed a case against Paytm now, when the company has existed for around six-years now, experts suggest that this could be a competitive move. The law states that, after a company advertises its trademark application, an opposition to its registration can only be filed in the time frame of four months from its date of registration. In this case, the complaint from PayPal comes in on the final day of the four-month timeframe for registering opposition to Paytm’s advertisement of its trademark application, which was filed on July 18.
“Paytm has been around for some time now and PayPal could have objected to the use of the mark by initiating legal proceedings. This wasn’t done. Whilst filing of oppositions is fairly normal in the industry, in the present case, it may also be a competitive move,” Samuel Niranjan, counsel, intellectual property, at law firm Khaitan & Co told Gadgets Now. ALSO READ: Paytm actually means Pay To Modi , Rahul Gandhi takes a dig at demonetization
Additionally, in the scenario where PayPal wins the the trademark battle, the latter would have to change the colour scheme of its logo, and might have to pay hefty damages as per the trademark registration laws of the country.