Paytm Embroils In A Trademark Fight!
PayTM, which has benefitted greatly with the demonetization effect seem to be in a soup. The company is now facing copyright infringement case filed by Global money transfer company PayPal.
PayPal in its complaint has accused the India’s largest mobile wallet company, Paytm of copying its colour to market its brand.
In all fairness, there are a lot of similarities in both the logos as Paytm is using the similar colour combination to that of PayPal. Furthermore, both the brand name starts with the word” Pay” which further increases the confusion.
However, what surprises everyone is the fact is the timing and the reason why PayPal kept mum all these days!
The subscriber base of PayTM has grown leaps and bounds since November 8, 2016 (the day on which the demonetization of Rs 500 and Rs 1,000 started). As per one record, Paytm is currently adding nearly half million new users to its fold every day.
I’m sure Paytm will tide over this problem, but the biggest question is; at what cost? Paytm has spent a fortune on its advertisement as a part of its brand building activity. In fact, it has increased the budget on ads spending by manifold. Therefore, if Paytm cows down to the pressure, it might have to change its logo design at least to change the colours of the brand. It might also end up paying a huge chunk of money as damage to PayPal. That is not good news at all!
All these will severely dent the company’s bottom line.
On a related note, you may recollect Snapdeal had spent nearly 200 Crores when it rebranded itself. Going by this numbers, I’m sure Paytm will realize the kind of disaster it is currently staring at.
In fact, Paytm is not the only company that had faced this problem. Food delivery start-up Zomato had faced similar problems when it started Foodiebay, but had to face opposition from Ebay because the name sounded very similar.