TokenPocket App Taken Down from Apple's App Store in Trademark Dispute with PayPal

A recent dispute between PayPal and TokenPocket displays the importance that enforcement efforts on third-party platforms can have in the trademark area.

 

Parties:

-PayPal is the well known provider of online payment services. PayPal uses a stylized "P" logo and owns trademark registrations for the logo, including U.S. Reg. No. 6275156 for the following mark:

-TokenPocket provides cryptocurrency wallet services. According to its listing on the Google Play App Store, "TokenPocket is the most popular multi-chain Crypto&DeFi wallet.” See: https://play.google.com/store/apps/details?id=vip.mytokenpocket&hl=en_US&gl=US

 TokenPocket uses a stylized "TP" logo, which can be seen below:

Dispute:

-In a message posted to its website on November 4, 2021, TokenPocket announced that its App had been taken down from the Apple App Store because "PayPal unilaterally filed a complaint with the TokenPocket trademark issue". 

-TokenPocket indicated that it had previously received a legal demand letter from PayPal and that they "want to resolve [the dispute] in a friendly negotiation way, [but] PayPal has no more replies to this."

-TokenPocket went on to state that it has been offering services in the blockchain field since at least as early as 2018, and that PayPal only began to invest in blockchain projects in 2019 and did not have a "corresponding landing action" until 2021.

 See: https://tokenpocket-gm.medium.com/announcement-on-the-temporary-removal-of-the-ios-version-of-tokenpocket-by-the-app-store-1e1648be8ba4

Comments:

-It appears that the dispute is in its early stages, with PayPal allegedly having sent a demand letter to TokenPocket followed by a takedown notice to a third party platform (Apple's App Store).

-Based on its comments on the dispute, it appears that TokenPocket is pushing back against PayPal's demands, and may be taking the position that there are sufficient differences between the two logos to prevent any consumer confusion, and that in any event, it has priority over PayPal in the blockchain space.

-In the interim, however, PayPal has been able to achieve an early victory by allegedly getting TokenPocket's app taken down from the Apple App Store.

-Regardless of the ultimate outcome, this dispute highlights the importance of trademark enforcement efforts on third-party platforms, which can give significant strategic advantages to trademark owners.