Japan court orders Zoom to pay damages in trademark dispute

The Tokyo District Court ruled that similarities between the logos of Zoom Communications and Japan’s Zoom Corporation could have caused consumer confusion, particularly before the global surge in online communication services during the COVID-19 pandemic.

The court ordered the US firm to pay approximately 160 million yen (about $1 million) in compensation.

It also ordered NEC Networks & System Integration, which distributes Zoom’s services in Japan, to pay additional damages of around 16 million yen.

The Japanese company argued that the similarity between the logos triggered mistaken inquiries, market disruption, and stock volatility, affecting business operations and investor confidence.

However, the court found that as video conferencing became widely used after mid-2020, consumers became better able to distinguish between the two companies.

As a result, it limited compensation to the earlier period and declined to prohibit the US company from continuing to use its branding.