BharatPe and PhonePe Settle Long-Standing Legal Disputes Over Trademark ‘Pe’ Suffix

 

In a significant development for India’s fintech sector, BharatPe and PhonePe, two prominent digital payment companies, have resolved their protracted legal battles over the trademark rights to the ‘Pe’ suffix. This amicable settlement marks the end of a high-stakes dispute that has captured industry attention and underscores the intense competition in the rapidly growing digital payments market in India.

The conflict began when PhonePe, a leading player in the UPI-based payment space, claimed exclusive rights to the ‘Pe’ suffix, alleging that BharatPe’s use of the term constituted trademark infringement. PhonePe, owned by Walmart, argued that the suffix was a distinctive part of its brand identity, and its usage by BharatPe could lead to consumer confusion.

BharatPe, on the other hand, contested these claims, arguing that ‘Pe’ is a common Hindi suffix meaning ‘on’ or ‘at’, and thus cannot be monopolized by a single entity. The Delhi-based company, which has carved out a niche with its merchant-focused payment solutions and lending services, maintained that their use of ‘Pe’ was generic and descriptive, rather than infringing.

After numerous court hearings and a significant amount of legal expenditure, both companies have decided to settle their differences out of court. The details of the settlement remain confidential, but sources indicate that it involves mutual agreements on the usage of the ‘Pe’ suffix, allowing both companies to continue using the term without further legal interference.

This settlement is a strategic move for both parties. For PhonePe, it ensures that its brand remains protected without further diluting its resources in lengthy legal battles. For BharatPe, it eliminates the uncertainty and potential rebranding costs associated with the dispute, allowing the company to focus on its core business operations and expansion plans.

The resolution of this dispute is a positive signal for the fintech industry, highlighting the potential for competitive entities to find common ground. It also reflects the maturity of the sector, where businesses are increasingly prioritizing collaboration and coexistence over prolonged litigation.

As the digital payments ecosystem in India continues to evolve, the settlement between BharatPe and PhonePe may set a precedent for resolving similar conflicts, fostering a more harmonious and innovative environment for all stakeholders.