Payments firm and mobile commerce Paytm join the list of more than a dozen Indian companies, who have been dragged to the courts by foreign players over trademark infringement.

Payments firm and mobile commerce Paytm join the list of more than a dozen Indian companies, who have been dragged to the courts by foreign players over trademark infringement. In the event of Paytm, international payment firm PayPal has accused it of using a logo that's very similar to its own.

Paytm joins the set of several Indian companies including ITC and McDowell that are alleged to be replicating trademarks of companies such as Glenfiddich and Cadbury .

California-based PayPal, once a part of e-commerce important eBay, has filed a case together with the Indian trademark office, backed by Chinese Internet giant Alibaba, from the Paytm. In a 14-page file, PayPal has stated that the Delhi-based firm has been using its distinctive two-tone blue colour scheme for its goods and services business. PayPal has the right to use any one of these and has registered about five different kinds of logos together with the Indian trademark registrar below the Trade Marks Act, 1999, and is using the logo.

In the letter to the Registrar of Trademarks, PayPal stated that, “Such adoption and/ or use of the impugned mark is likely to cause confusion and deception amongst members of the commerce and the general public for the reason that they'll incorrectly believe that services under the impugned mark orginate from the adversary (PayPal)...it can also be likely to dilute our brand equity.”

PayPal has, therefore, opposed the brand application of Paytm in the name of One97 Communication, in 2013, filed in August.

Meanwhile, PayPal’s criticism also comes at a time when Paytm, founded by Vijay Shekhar Sharma, has been aggressively marketing and marketing its services on the back of the authorities' massive drive to making India a cashless market after the demonetisation exercise it undertook on November 8. The very next day Paytm had come out with his image on the ad, with massive print advertisements congratulating Prime Minister Narendra Modi. Paytm also faced flak for using the Prime Minister’s picture in its ads.

As it witnessed a major spike in its user base in the last one month, Paytm, which likewise comes with a RBI licence to operate and run a small payments bank in the country, has been the largest beneficiary of demonetisation.

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