The Madras High Court has upheld a previous decision in a trademark infringement case, dismissing a series of appeals brought forth by digital payments company PhonePe against DigiPe's logo usage. The Division Bench, comprised of Chief Justice SV Gangapurwala and PD Audikesavalu, declined to intervene in the earlier order issued by a single judge in June.
The core of the decision rested on two key factors. Firstly, PhonePe failed to establish that its Unified Payments Interface (UPI) app and DigiPe's app served the same customer base. Secondly, the court found inadequate evidence to support the assertion that the use of the common element 'Pe' by DigiPe could lead to customer confusion.
The Division Bench noted that while DigiPe claimed its app served both individual customers and merchant establishments, PhonePe contended that DigiPe's customer base was distinct. The court highlighted DigiPe's categorical statement on their website that their app caters to the needs of both merchants and customers. This assertion countered PhonePe's claim that the use of 'Pe' in DigiPe's name could potentially cause confusion.
Furthermore, the court observed that PhonePe's stance in various copyright infringement cases, particularly involving the use of the term 'Pe,' has been inconsistent. This inconsistency raised doubts about the credibility of PhonePe's claims.
"In light of the facts and circumstances presented, reconciling the plaintiff's varying stances before different courts becomes challenging. The plaintiff's position before the Trademark Registrar significantly diverged from the stance taken in the current case. Similarly, PhonePe's position in litigation against 'BharatPe' before the Delhi High Court also diverged. In that case, PhonePe admitted that 'CardPe' was the prior user and adopter of the 'Pe' formative mark. It's important to note that PhonePe did not originate the 'Pe' formative mark," the Court's order said.
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