Judo Bank preps brand biff with UK fintech
Another legal battle over intellectual property rights has erupted in the local financial services sector, with fintech startup Judo Bank set to challenge moves by a UK business wanting to trade in Australia under the "Judo" moniker.
Following an expedited examination process in September, IP Australia has accepted an application from London-based digital payments company, Alternative Payments Limited, to market its mobile payments processing service using the "JudoPay" brand.
Alternative Payments has been operating in the UK and Europe as JudoPay since 2013 but its trademark application was only lodged with the Australian intellectual property regulator in June.
Judo Bank, which secured a full banking licence from APRA earlier this year, first claimed the right to use the Judo name for "electronic banking" and a wide range of other financial services in May 2017.
IP Australia records show that Judo Bank is yet to notify the regulator of its opposition to the application from Alternative Payments, but Banking Day understands that the two companies first met in Sydney last month to discuss the potential brand clash.
Judo Bank founder and chief executive Joseph Healy told Banking Day he had communicated his company's position to the management of Alternative Payments.
"We are in discussions with the company and our position is very clear: it is our trademark and they must withstand and desist from using the name," Healy said in an emailed response to questions from Banking Day.
The Judo Pay business owned by Alternative Payments was founded in London in 2012 by British entrepreneur George Karibian and French businessman Jan Farrarons. The two founders remain major shareholders in the company.
While abridged financial accounts lodged with the UK corporate regulator show that the company generated a net loss of around £2 million in the 12 months to the end of February 2018, the founders and other investors have since boosted the capital base of the business.
The business model is focused on partnering with retailers to develop digital payments platforms for which Judo Pay provides ongoing payments processing services.
The client list is impressive and includes KFC throughout the UK and one of Britain's largest hotel chains, Young's Pubs.
In its Australian trademark application, Alternative Payments is seeking to use the Judo brand for debit card transaction processing and "processing of payments for banks".
IP Australia's acceptance of the trademark is now awaiting advertisement.