Pandora 2016

PayPal and Pandora have settled the May 2017 lawsuit in which the former went after the music streaming service because its blue capital “P” logo, introduced in October 2016, bears a striking similarity to that of the online payment service.

The suit, filed in Manhattan federal court, claimed that the confusion over the two logos “has interfered dramatically with PayPal users’ experience,” as Inside Radio reported May 22. It also maintained, “One critically important function of the PayPal logo is to stand out on the crowded screens of customers’ smartphones and tablets.”

The lawsuit stated 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.” Paypal insisted that the logo confusion damages its business because customers are mistakenly opening the wrong app on their phones. As a result, PayPal said the logo confusion could cause it to lose customers.

No details of the settlement were shared. A Nov. 16 court filing obtained by Inside Radio, states simply, “This matter having been settled pursuant to a written settlement agreement between Plaintiff PayPal and defendant Pandora Media and the parties having herein consented to a dismissal of all of their claims and the within action.” Each party carried its own costs and attorney fees.

In May, PayPal claimed that it had attempted to “work the problem out” with Pandora, but its letters were unheeded, so it asked the court to force Pandora to stop using the logo and pay unspecified damages.