In its notice, PayPal said that Paytm is “deceptively and confusingly similar to PayPal” and follows a similar colour scheme, which is likely to cause confusion among consumers.
It also said Paytm “slavishly adopted the two-tone blue colour scheme” of PayPal in its entirety. “The first syllable in each mark is in dark blue colour and the second syllable in a light blue colour,” it said.
The filing further states that the Paytm’s trademark possesses similar colour scheme, which is likely to cause confusion and deception among the consumers. It further says that the “use of the impugned trademark is likely to dilute the brand equity of the opponent’s earlier trade mark.”
“Further, both marks begin with the term ‘PAY’, which consumers tend to remember more than the second syllable and the marks are of similar length,” PayPal said.
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.
Both PayPal and Paytm have declined to comment on the story as of now.