Zoom Draws Lawsuit From Japanese Namesake

Japanese recording equipment maker Zoom Corp has prosecuted U.S. namesake Zoom Video Communications Inc ZM, Bloomberg reports. The Japanese firm aims to protect its trademark. However, it will not seek damages from the U.S. videoconferencing firm. 

• Zoom Corp, founded in 1983, trades on the Jasdaq exchange. It is one of a crop of similarly named companies that were subject to confusion as people turned to its American namesake to navigate the early days of the coronavirus pandemic. 
• Zoom Corp said “several” law firms advised of a high chance of infringement on its registered trademark rights by the American namesake.
• Analyst rating: Daiwa analyst Stephen Bersey upgraded Zoom Video Communications to Underperform from Sell with a $207 price target, implying a 5.5% downside.
• Price Action: ZM shares traded lower by 2.99% at $212.43 in the market session on the last check Tuesday.