The Paytm-Paypal dispute
PayPal is an USA based multinational company, whose presence in India is growing more than satisfactorily and rumour has it, that it may acquire a stake in Freecharge, although Freecharge has out rightly denied this.
- Jan 18, 2017,
- Updated Aug 2, 2017 4:03 PM IST
Even though PayPal may not have such a wide presence in India as compared to its competitor Paytm, Pay Pal is more likely to succeed, as it has been first to use a mark with this distinct colour combination.
Schedule 10 of the Trade Marks Act, 1999, pertains specifically to use of colours and reads as follows:
1. A trademark may be limited wholly or in part to any combination of colours and any such limitation shall be taken into consideration by the tribunal having to decide on the distinctive character of the trademark.
2. So far as a trademark is registered without limitation of colour, it shall be deemed to be registered for all colours.
PayPal is expected to defend its mark by pointing out the similarities in the colour combinations between the marks, and by showing that Paytm would only copy such a similar colour scheme so as to pass off its services as that of PayPal and gain from their global reputation.
Paytm is more likely to argue that it has no reason to attempt to tap into PayPal's reputation, as it has a more substantial presence in the Indian market & that the shades of colour used in their mark are not identical to that of PayPal.
The outcome of this tussle now depends on the view that the Office of the Trademarks Registry adopts. The fates of the companies hang on this decision, although it may not have a substantial effect on their revenues and market share.
(Nishit Dhruva is Managing Partner at MDP & Partners. He was assisted by Roger Mendonca, an Associate at MDP & Partners, for writing this column)
Even though PayPal may not have such a wide presence in India as compared to its competitor Paytm, Pay Pal is more likely to succeed, as it has been first to use a mark with this distinct colour combination.
Schedule 10 of the Trade Marks Act, 1999, pertains specifically to use of colours and reads as follows:
1. A trademark may be limited wholly or in part to any combination of colours and any such limitation shall be taken into consideration by the tribunal having to decide on the distinctive character of the trademark.
2. So far as a trademark is registered without limitation of colour, it shall be deemed to be registered for all colours.
PayPal is expected to defend its mark by pointing out the similarities in the colour combinations between the marks, and by showing that Paytm would only copy such a similar colour scheme so as to pass off its services as that of PayPal and gain from their global reputation.
Paytm is more likely to argue that it has no reason to attempt to tap into PayPal's reputation, as it has a more substantial presence in the Indian market & that the shades of colour used in their mark are not identical to that of PayPal.
The outcome of this tussle now depends on the view that the Office of the Trademarks Registry adopts. The fates of the companies hang on this decision, although it may not have a substantial effect on their revenues and market share.
(Nishit Dhruva is Managing Partner at MDP & Partners. He was assisted by Roger Mendonca, an Associate at MDP & Partners, for writing this column)