Category: Trademark

Infringement Of Trademark – Dispute between Paypal v Paytm

Trademark law is to prevent injury to the goodwill and reputation of the company which owns the trademark as well as consumers are not misled as to the product, service or their sources. Marks helps the buyer to identify their source and assure them. Trademark is an exclusive right which is given to the person for their product. It’s a mark capable of distinguishing the goods and services from one person to others. There are different kinds of trademarks which are prevailing in existence. 

INFRINGEMENT 

  • If any person who uses the right of others or  registered trademark of another right.
  • Making a commercial purpose of someone’s trademark without the concern of the person is stated as infringement. 
  • The act of violation of law or legal right. 

CASE SUMMARY 

  • PayPal is an American leading company operating worldwide for online payment systems that helps in online transactions and also includes electronic alternatives to traditional paper methods like cheque and money order.
  • Paytm is an Indian e-commerce payment system and financial tech company. In Paytm it consists of 11 Indian Languages and offers for online usage or transactions of money like mobile recharge, travel, movies, events booking, utility bills, pharmacies, educational institutions with the Paytm QR code. This company has also launched two new wealth management products like Paytm gold savings plan and gold gifting to simplify long term savings. 
  • On November 18, 2016, Paypal Inc filed an objection at the Indian Trademark Office accusing Paytm, an Indian mobile wallet company, of trademark infringement.
  • November 8, 2016, when the Indian PM Narendra Modi announced the notification of currency notes of Rs. 500 and Rs. 1000 invalidating overnight 80% of the country’s cash in circulation.
  • It leads to an increase in the digital economy system where that amounts to a raise in a large number of Paytm users in India 
  • For instance, over half a million users a day, Paytm saw its daily transactions grow from 2.5 million to over 7 million a day and a 10-fold increase in the amount of money added to accounts in the first 14 days after the demonetization was announced.
  • Paypal made an objection over Paytm by stating that Paytm has copied the color combination of Paypal which has existed for a longer time.
  • But while looking into the case it has been clear that the color might look similar by the shade of color which was used by Paytm is totally different from Paypal. So the case came in favor of Paytm. 
  • Nowhere people are getting confused at times people used to get because of the color combination which they had used are partially similar but being a new company it has reached in high in recent times it’s not because they copied PayPal it’s because the main reason behind is Paytm is more friendly for Indians and also it has 11 different languages than PayPal.
  • Paytm is prevailing everywhere from normal small street fruit shops to top end transactions. Paytm is an Indian company so it was structured with the feasibility for Indian users. 
  • PayPal is an American company mainly for international transactions so both are distinctive in both ways. So it has been cleared that Paytm doesn’t infringe on the rights of PayPal.
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