eBay Sued by Online-Marketplace Rival

Online sales giant eBay faces a lawsuit from a small China-based rival called 5miles, over an alleged trademark infringement.

Representatives of the company’s owner, Third Stone Co., accused the new eBay service “Close5” of adopting a logo and name that was “confusingly similar,” to 5miles. They allege that their company’s brand and sales may have been affected as a result, including examples of “actual customer confusion.”

Both sites function as a local marketplace – both use the phrase “everything within 5 miles” in their marketing or branding. 5miles is popular in the Dallas and Houston markets and has totaled 5.6 million downloads from its inception to the end of January, with those users engaging in an estimated $100 million worth of transactions every month.

The local marketplace startup field is a crowded one; besides 5miles and Close5, rivals OfferUp and LetGo have had 11 million and two million downloads since their inception, respectively.

Third Stone claims it applied for the 5miles trademark in May 2014, Close5 filed for their trademark in September 2014. Close5 was previously known as “Rumgr,” and was reformed and renamed after being acquired by eBay.

A visual comparison of the companies’ two logos can be found on Forbes:
Logo Comparison

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