Ripple Hit with Lawsuit Over PayID Branding by Australian Payments Consortium

The Legal Tussle: Ripple vs. NPPA

In a shocking turn of events in the world of fintech, Ripple Labs Inc. is in hot water thanks to a lawsuit filed by the New Payments Platform Australia (NPPA)—a heavyweight consortium of every major bank in the Land Down Under. The intrigue? Allegations of intellectual property infringement concerning the tantalizingly similar branding of Ripple’s ‘PayID’ payment standard.

Background of the Suit

Technology journalist Rohan Pearce broke the news on August 24, revealing that NPPA had taken its grievances to the Federal Court of Australia. A screenshot shared by Pearce showcased the legal maneuvers, hinting at a substantial battle ahead for Ripple. With over 60 Australian banks using NPPA’s platform, this lawsuit could have waves of repercussions across various financial sectors.

The PayID Conundrum

The crux of the issue lies in the nuanced spacing in the branding: NPPA secured the trademark rights for ‘Pay ID’ (notice the space) back in March 2017, while it also attempted to trademark ‘PayID’ (no space) in October that same year. However, that particular application lapsed without a registered trademark in April 2018. Talk about a marketing mishap!

Ripple’s Moves and Concurrent Trademark Applications

Meanwhile, Ripple was not sitting idly by. The company filed for its own ‘PayID’ trademarks with the United States Patent and Trademark Office on June 17, 2020—right as the waters started to heat up. Just days later, NPPA countered with another application for the same trademark in Australia. Classic case of who gets to the trademark office first!

Reactions from the Industry

The legal drama escalated quickly, with an online interlocutory hearing held by the court on August 20, followed by a case management hearing on August 26. In a bid to gather insights, Cointelegraph reached out to other members of Ripple’s PayID alliance. The responses ranged from silence (looking at you, BTC Markets) to a polite refusal to comment from Independent Reserve.

Conclusion: A Waiting Game

As the legal wrangling continues, one can only imagine the swirling thoughts in Ripple’s boardroom. Did they underestimate NPPA’s grip on the Australian payments space? Or are they prepared for a drawn-out battle over what’s in a name? Stay tuned as this saga unfolds.