Global payments major PayPal has filed a complaint opposing the registration of Paytm’s trademark in a notice with the local trademark office, which falls under the ministry of commerce. The notice reviewed by TOI, says that PayPal has pointed out that Paytm’s trademark is “deceptively and confusingly similar to PayPal” with a similar colour scheme.
“The first syllable in each mark is in dark blue colour and second syllable is in light blue colour. Further both marks begin with PAY’ which consumers tend to remember more than the second syllable, and the marks are of similar length.These similarities cause likelihood of confusion in the aggregate, specially considering the fame of the opponent’s (PayPal) earlier trademark,” the notice said.
When contacted, both PayPal and Paytm spokespersons refused to comment on the matter.
The Noida-based Paytm had advertised its trademark registration in July, a mandatory step, after which anyone, if at all, gets a period of four months to raise objections. Rahul Dev, partner, Tech Corp Legal, said that the timing of PayPal’s notice is interesting since it was filed on the last day of the mandatory timeline. Paytm has been one of the biggest beneficiaries of the government’s demonetisation plan announced over a month back.
It has seen a big jump in new users, transaction volumes due to the cash crunch. PayPal has mentioned in its notice that its brand name has been registered since 1999 across the globe. “It remains to be seen if the matter will reach the courts if they do not find a resolution through this process,” Dev said.