Trademark Infringement Case: By PayPal Against Paytm

In this 21^st century, I must confidently say that almost every internet user now-a-days, must be using PayPal, Paytm, Freecharge, etc,. We all are always aware about all the recent happenings going on in these firms, be it in terms of sale, or even controversies. Talking about controversies, the one that is stealing the thunder these days, is the trademark infringement complaint, filed by the company, against Paytm.

• What is this Complaint All About?

Well, the complaint is filed by the global payments firm, i.e., PayPal. Against whom? This complaint is against India’s largest internet mobile wallet company, i.e., Paytm. What is the basis of the complaint? If we listen to PayPal, they claim that Paytm has used similar logo, as is used by them. According to the company, Paytm wants to take advantage of the global reputation of PayPal, so as to increase their user base.

Let me tell you the exact complaint of PayPal. They say that Paytm slavishly adopted the two shades of blue color in its entirety, as is exactly the scheme of PayPal. Also, they say that both the marks begin with the word “PAY”, which is the first syllable, and hence is more memorable to the customers, as compared to the second syllable. Also, the marks are of similar length.

• How Likely is This Complaint Going To Affect Paytm?

In this situation of demonetization, almost half a million new users are being added every day for making cashless transactions. Hence, we can easily speculate that this trademark infringement complaint can definitely reduce Paytm’s momentum of growth. If PayPal wins this battle, then obviously Paytm will have to change the color scheme of its logo. This will further indicate a significant dent in Paytm’s identity issue.

It is seen that Paytm is always being targeted, and PayPal is not the first company to do so. Earlier also, Indian rival Mobikwik’s founder Bipin Preet Singh claimed that Paytm is not using the correct business model. He said that Paytm is enticing customers by offering cash back, and this method is not suitable for a proper business. However, Paytm was not much hampered by this complaint.

But, the complaint filed by PayPal seems to be genuine. Also, it has been using this trademark since 1999. PayPal has appealed to the trademark registration body in order to refuse the application submitted by Paytm. This trademark issue is actually deceptive as well as confusing. Let us see what will be the outcome of this complaint. Stay tuned to know more.