Xtrade trademark court in Germany ruled out that Cypriot brokerage's name is “confusingly similar” to that of XTB full name 'X-Trade Brokers'.
4 August, AtoZForex – Polish broker XTB is a publicly listed broker, whose shares are traded on the Warsaw Stock Exchange (WSE). Reportedly, Polish brokerage XTB continues the litigation process against Xtrade. What is the reason behind the lawsuit?
Xtrade trademark court in Germany rules against Xtrade
XTB’s full name is X-trade Brokers. The firm has claimed that the name Xtrade is too close to the trademarked brand XTB. XTB did argue in regards to its brand name in numerous European courts. In April, XTB has already won a lawsuit against XTrade.
That time, the Warsaw Court of Appeal has decided that XTrade cannot use the following verbal and word markings: ‘XTB’, ‘X-Trade’ and ‘XTrade’. Also, the court has ruled out that XTrade Europe Ltd cannot use the sign xtrade.eu while providing or advertising its financial and brokerage services.
Moreover, earlier in May, the Cyprus Securities and Exchange Commission (CySEC) has suspended the trading license of XTrade for misleading marketing practices. Yet, the company has restored its license after complying with CySEC requirements. The news about Xtrade CIF license restored appeared as a positive sign that the Forex industry in Cyprus is getting healthier.
In addition, XTrade holds licenses in Australia and Belize.
Xtrade trademark court in Germany rules against Xtrade
Now, XTB aims to win another case. This time, the action takes place in Germany. In fact, XTB has been using the ‘X-Trade Brokers’ brand in Germany starting from 2009.
As the German Court ruled out, the name of the Cypriot brokerage XTrade is “confusingly similar”, taking the dominant elements of the brand names ‘X-Trade’ vs. ‘XTRADE’ into the consideration.
Furthermore, the case has covered similar logos and other marketing materials that were used by the XTrade and that are similar to those of XTB. The Polish brokerage stated that the confusion appears misleading. The representatives stated that it has caused irreversible damage to its business.
The XTrade will need to pay XTB the compensation for the damage. Yet, the amount is still uncertain but should be determined. This will be done with the use of both XTrade and XTrade Europe Ltd applying a restriction on the Cypriot company.
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