Skype’s recent IPO filing revealed a legal battle with BSkyB over the rights to use “Sky” in its company name. Since both companies operate in telecommunications, could they be considered competitors? Apparently not in Switzerland, Turkey or Brazil, where Skype won the right to use its name. The Trade Marks and Designs Registration Office of the European Union, however, ruled in favor of BSkyB’s objection to the Skype bubble logo and Skype says they’ll appeal.
The main issue is whether the brands create marketplace confusion and BSkyB has consumer research that says “yes” it does. Skype’s IPO document said that if a trademark registration was unsuccessful, it “may have a material adverse effect on our business. Moreover, a successful opposition to our application in one or more countries might encourage BSkyB or other third parties to make additional oppositions or commence trademark infringement proceedings.” The Skype document also noted out that litigation would be “costly and time consuming” regardless of the outcome.
Do you think “Skype” and “BSkyB” create marketplace confusion?
