In India, where after demonetization, people are switching on a large scale to cashless payment modes and one of the mode is PayTM, which has become highly popular all of sudden.
But this six-year-old startup is facing legal problems after the giant online payment system, PayPal lodged a complaint against it.
Actually, PayPal has lodged a complaint accusing that the company (PayTM) has copied its trademark.
Well, the legal notice, sent from PayPal explains “The First Syllable in both names have a similar color scheme, which is dark blue and next syllable in both names has a light blue color. Further, both marks begin with PAY and share the same length, so the chance of people to get confused while choosing the service becomes higher. ”
PayPal has even explained by saying that PayTM has no solid reason to choose an identical color scheme and that too from a rival company. The company added, “it’s just a move to take advantage of PayPal’s established reputation in the international market”.
An official report from the PayTM says that the company had advertised its new trademark, which PayPal has complaint about, on July 18th, 2016.
And as per as current rule, if any other brand has any objection to it, they can raise their concern within next four months.
Tech Business Lawyer, Rahul Dev, says “the timing of the PayPal for registering a complaint against the Paytm’s trademark is very interesting. If you see, PayPal has sent the legal notice on November 18th, last day of the 4-month deadline.”
Lastly, PayPal has requested to the concerned authorities to cancel the Paytm’s application for trademark registration.