PayPal files trademark infringement complaint against Paytm
Global e-wallet company PayPal has filed a trademark infringement complaint with the Indian Trademark office against mobile wallet company, Paytm, on using similar colours in its logo
Global e-wallet company PayPal has filed a trademark infringement complaint with the Indian Trademark office against mobile wallet company, Paytm, on using similar colours in its logo.
PayPal has alleged that Paytm logo is exactly same as theirs, reported Hindustan Times. The global giant has said that Paytm take advantage of PayPal’s global reputation and use it to grow its user base.
The notice further mentions that how the Indian e-wallet firm has lifted the word "pay" which sounds similar to PayPal.
“(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.
PayPal’s action against Paytm has come at a time when Paytm is making big profits after the demonetisation of high-value currency which has led to cash crunch.
PayPal has been using its trademark since 1999, and has appealed before the trademark registration body to refuse Paytm’s application for trademark registration.
Experts say that if Paytm loses trademark battle against Paypal and subsequently changes the colour scheme of its logo, it could make a significant dent in the company's identity especially because it has been spending aggressively to advertise since demonetization.
Paytm which is touting to complete two billion registrations this year may see a slowdown in its growth momentum because of PayPal's infringement complaint.
Earlier Paytm’s Indian rival MobiKwik had that Paytm is using foreign investments to acquire consumers through cashbacks, and that the method is not a sustainable business model.