PayPal accuses Paytm of trademark infringement, files complaint
PayPal, the global payments firm, has filed a trademark infringement complaint in the Indian Trademark office against India’s largest mobile wallet company Paytm on using similar colours in its logo.
The complaint stated that Paytm had no reason to do so if it did not want to take advantage of PayPal’s global reputation and grow its user base.
“(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,” the PayPal notice said.
Paytm did not respond to HT’s calls.
PayPal’s complaint against Paytm comes at a time when the Indian payments solution company is adding more than half a million new users every day after demonetisation. The trademark infringement complaint can reduce Paytm’s growth momentum.
PayPal is not the first company trying to pull down Paytm. Indian rival MobiKwik’s Bipin Preet Singh said with the help of foreign investment, Paytm was acquiring consumers through cashbacks, and that the method was not a sustainable business model. Other internet firms in India such as Flipkart, Snapdeal, ShopClues, and Ola are also attracting customers through discounts funded by foreign investment.
However, if PayPal wins this trademark battle, Paytm will have to change the colour scheme of its logo, making a significant dent in the company’s identity, especially as it has been spending millions on advertisements since the note ban.
PayPal has been using its trademark since 1999 and has appealed to the trademark registration body to refuse Paytm’s application.
Paytm is not the first new firm to get embroiled in a trademark fight. Zomato that started as Foodiebay faced opposition from Ebay.