TOKYO, April 25 (Bernama-Kyodo) -- A Japanese court on Friday ordered the major US videoconferencing firm Zoom Communications Inc. to pay about 160 million yen (US$1 million) to the Japanese audio company Zoom Corp. for trademark infringement due to their similar logos, but stopped short of prohibiting the former from using the likeness.
Kyodo News reported that the Tokyo District Court also ordered NEC Networks & System Integration Corp., the service distributor of Zoom Communications in Japan, to pay around 16 million yen in damages.
The Japanese Zoom had filed a lawsuit requesting the US communications company stop using its logo, citing the similarity of the two, which had led to misunderstandings.
The Japanese firm had said it had been flooded with inquiries about video conferencing services, while developments regarding the US company caused volatility to its own stock, which hindered operations and affected investors.
The Tokyo-based firm, which designs and produces recording devices, was founded in 1983 and registered its logo as a trademark in 2006.
Presiding Judge Katsumi Shibuya ruled that there was a chance that the US communications company's logo could be mistaken for the plaintiff's, thus constituting trademark infringement.
However, the court also found that, after demand for web conferencing services surged in July 2020 due to the COVID-19 pandemic, users were able to distinguish between the two companies.
The court awarded damages equivalent to the licensing fees up until June 30, 2020, and determined that there were insufficient grounds to grant an injunction against the use of the logo.
Zoom Communications said in a statement that it was relieved that the court had allowed the continued use of its logo, but the compensation order was deplorable and that it will consider its response.
-- BERNAMA-KYODO
