PayPal files infringement complaints against Paytm

PayPal has filed infringement complaints against India’s largest mobile wallet company, Paytm in the Indian Trademark office on using the same first syllable and the same colour distribution on its mark.

PayPal complaint specified that Paytm had no other motive to have done so if it is not deliberate about taking benefit of its global repute to grow its (Paytm) user base.

In the complaint notice filed by PayPal to the trademark office, the global payments company said, “(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 notice added.

Paytm, however, are yet to respond to the notice.

PayPal’s complaint against Paytm is coming at a time when the Indian payments solution company is adding more than half a million new users every day after demonetisation, and analysts have said the infringement complaint can reduce Paytm’s growth momentum.

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.