THE BENDIGO and Adelaide Bank is considering appealing a Federal Court decision to overturn the company's trademarks on the term "community bank".
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The Financial Review reports the Federal Court of Australia upheld an application by the Community First Credit Union, which sought to overturn two trademarks featuring the term "community bank" awarded to Bendigo Bank in 1999 and 2001 respectively.
It also upheld an appeal against a ruling by the Register of Trade Marks in 2017 that opposed intended trademarks by Community First Credit Union.
A Bendigo Bank spokesperson said the company was still assessing its position.
"The Bank is considering its options with regard to filing an appeal following the decision by the Federal Court that the trade mark register be rectified to remove the registration of the Community Bank trademark," the spokesperson said.
"Notwithstanding the decision, the Bank and its community partners are not prevented from continuing to use the term Community Bank".
Justice Brigitte Markovic was convinced of Community First's argument that Bendigo Bank failed to "inherently adapt" its trademarks to distinguish its services from the "ordinary signification of the term 'community bank' as a provider of banking services or financial institution that serves a particular community".
The ruling is a big blow for Bendigo Bank, which uses the term "community bank" and an associated registered trademark symbol frequently in advertising and marketing campaigns.
The bank's 2019 annual report made 20 references to the term "community bank" and trumpeted the deployment of $220 million in funding for community initiatives in regional and rural areas.
The Business Council of Co-operatives and Mutuals, a lobby group that counts Community First Credit Union among its members, told the Financial Review it welcomed the verdict.
"We are pleased the courts have removed this unfair restriction by a publicly-listed bank against a community-owned bank," said the council's chief executive Melina Morrison.
"The ability of Community First Credit Union to properly describe their business model has rightly been prioritised over the marketing strategy of a listed bank."
- with afr.com.au
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