Zoom Draws Lawsuit From Japanese Namesake

Japanese recording equipment maker Zoom Corp has prosecuted U.S. namesake Zoom Video Communications Inc (NASDAQ: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.