Pandora’s logo change isn’t music to PayPal’s ears.
The digital-payment company says Pandora’s big blue “P,” unveiled in October, damages its business because customers are mistakenly opening the wrong app on their phones.
“I was a little confused when I opened PayPal and Barenaked Ladies started playing,” one PayPal customer tweeted.
That was one of the more than 20 social-media posts PayPal included as exhibits in its lawsuit claiming trademark infringement and trademark dilution.
The suit, filed Friday in Manhattan federal court, claims that the confusion over the two logos — both of which are blue and white and use a capital “P” — “has interfered dramatically with PayPal users’ experience.”
“One critically important function of the PayPal Logo is to stand out on the crowded screens of customers’ smartphones and tablets,” the suit states. The company says it “has invested heavily in the PayPal Logo since its introduction.”
The lawsuit states that Pandora’s logo “not only resembles, but openly mimics the PayPal logo,” arguing that Pandora was aware of the similarities since “the PayPal Logo is on the checkout page of Pandora.com.”
Some confused PayPal users wondered online whether PayPal bought Pandora, which has had well-publicized financial problems and needed a $150 million infusion earlier this month.
PayPal claims the logo confusion could cause it to lose customers.
“Even the slightest delay in locating and using PayPal’s payments platform causes customers inconvenience, and degrades PayPal’s standing with customers and merchants,” the suit says.
Several trade publications also noted the similarities between the two logos after Pandora introduced its version in the fall as part of the launch of its ad-free pay service.
Pandora did not respond to a request for comment.
PayPal claims it tried to work the problem out with Pandora, but its letters were unheeded, so it is asking the court to force Pandora to stop using the logo and pay unspecified damages.