Paytm vs PayPal- War of the giants heating up

One of the biggest beneficiaries of the demonetization exercise, Paytm has been slapped with a notice of opposition against the registration of a trademark for its two-tone blue colour scheme by its global counterpart, PayPal.

PayPal has raised the objection to Paytm’s logo for being deceptively similar to its ‘earlier trademark’.

Section 21 of the Indian Trademarks Act of 1999 (Act) provides for a time frame of four months, for any person to oppose the advertised application of a trademark. It is under this provision that PayPal has filed the notice of opposition.

PayPal, in its notice, has taken recourse to the following two sections for denial of registration:

Section 9(2)(a) of the Act which provides for deception or confusion as an absolute ground of refusal against registration of the trademark;

Section 11 of the Act which provides for similarity with an ‘earlier trademark’ as a ‘relative’ ground for refusal to grant registration.

While Paypal has several trademarks registered in its name, this one in particular has by itself been ‘objected’ by the Registrar. PayPal has, therefore, ‘opposed’ Paytm’s trademark on the virtue of its ‘earlier trademark’ being ‘well-known’ under Section 2(1)(zg) of the Act.

Singh & Singh Lall & Sethi are representing PayPal while Sigma Legal Services have been representing Paytm before the Registrar, as per online records available with the Trademarks Registry.