Airtasker’s global expansion could be hit by Airbnb trademark stoush

Gig economy platform Airtasker’s global expansion plans have come under a cloud, as the recently listed company locks horns with tech giant Airbnb on a trademark stoush in Europe.

Airtasker’s stellar debut on the Australian Securities Exchange last month, which valued the company at $255.4 million, was partly propelled by the platform’s potential to expand its footprint overseas. Airtasker lets users outsource household tasks.

However, the company has been embroiled in a trademark dispute with Airbnb since 2019, with the $US106 billion ($138 billion) behemoth opposing Airtasker’s application to trademark its name in Europe.

Airtasker founder and chief executive Tim Fung said he is confident of a good outcome in the trademark dispute.
Airtasker founder and chief executive Tim Fung said he is confident of a good outcome in the trademark dispute. Credit:James Brickwood

Airbnb opposes the application on the basis that Airtasker has tried to trade off Airbnb’s more well-known trademark, which it registered in 2010 and get a benefit from using a similar mark.

In its submission to the European Union Intellectual Property Office, Airbnb argues its mark “is among the best known and most valuable marks in the world” and Airtasker’s trademark is identical in its word element in the first characteristic syllable ‘Air’.

“There is a high risk the relevant public will be unable to distinguish between the signs Airbnb and Airtasker which is true from the visual as well as the phonetic point of view,” Airbnb states.

Airbnb argues the average consumer will assume because of the use of ‘Air’ in Airtasker and the similar composition that Airtasker is a special service offered by Airbnb such as especially “tasked” accommodations according to travellers needs or a complimentary service to Airbnb’s main services.

The tech giant has not backed down on its opposition to Airtasker’s trademark with the most recent documents in the dispute filed last week.

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Airtasker’s founder and chief executive Tim Fung told The Age and The Sydney Morning Herald the dispute has been bubbling away for some time. “Regardless, we’re confident that they don’t have a strong case and look forward to a positive outcome,” he said. “Either way, this does not prevent us from offering our current services in the UK and EU.”

Airtasker is heavily reliant on the Australian market, which represents 99 per cent of its revenue, with the remaining 1 per cent derived from its operations in the United Kingdom.

However, Airtasker has significant international expansion plans, having launched in New Zealand, Singapore and Ireland in 2020 and has announced plans to launch in the United States this year.

“Airtasker intends to drive growth by establishing marketplaces in new international geographies” Airtasker’s prospectus to the ASX stated.

Intellectual property lawyer Siabon Seet, a partner at law firm Gilbert & Tobin, said Airtasker was likely to argue that the word ‘air’ was commonly used in names of businesses connected with Wi-Fi and airlines. However, she noted Airbnb had a “good authorship story” as the business name came from the blow-up air mattresses used by the founders when they first started the business.

She said proceeding with Airtasker’s international expansion plans with the legal proceedings afoot was “obviously much more risky” as Airtasker was at risk of infringement of Airbnb’s trademark and of not having its own trademark registered.

“They won’t get to register their own trademark in that country and in Europe,” she said. “It is really a commercial risk whether Airtasker decides that they think they have good chances of succeeding and are prepared to take the risk of just proceeding with the expansion anyway despite the fact they have this hanging over their heads.”

Airbnb declined to comment.

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Source: Thanks smh.com