Delhi High Court halts "PhonePey Loan" services

The Delhi High Court has issued an injunction against AGF Finlease India, prohibiting them from using the name "PhonePey Loan" for their digital lending services. This action follows a lawsuit filed by PhonePe, the digital payments platform owned by Walmart, alleging trademark infringement.

The court found that the name "PhonePey Loan" was deceptively similar to the "PhonePe" trademark, creating a high likelihood of consumer confusion. PhonePe's legal representation argued that the name implied an association with PhonePe, potentially misleading customers.

AGF Finlease argued that the use of "PhonePey" (with a slight spelling difference) was distinct enough to avoid confusion. However, the court dismissed this argument, deeming it insufficient to negate the infringement claim.

As a result of the injunction, AGF Finlease is now barred from using the name "PhonePey Loan" and related marks. Furthermore, the court ordered GoDaddy, the domain name registrar, to take down the "PhonePey Loan" website. Additionally, social media platforms like Facebook and Instagram were instructed to remove any posts that infringed upon PhonePe's trademark.

This decision underscores the importance of protecting intellectual property rights, particularly trademarks, in the digital marketplace.

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