Amazon’s Ring LLC is being sued for allegedly copying ADT’s trademarked blue octagon symbol. Bloomberg reports that the home security company wants Ring, a provider of smart home security devices, barred from using the symbol as it violates its copyright.
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According to Bloomberg, ADT Inc (ADT) alleges that it’s been using the blue octagon symbol for decades on window stickers and lawn-signs. It also states that that the trademarked symbol is currently displayed by about 6.5 million customers. The company wants a federal court to issue a cease-to-use order against using the look-alike symbol by the Amazon (AMZN) subsidiary.
According to the Bloomberg report, ADT owns 12 registered trademarks for the shape, color, and look of the blue octagon shape in question. It also claims to have invested substantial resources in promoting its security offerings under the blue octagon trademark.
The standoff stems from the two companies working together in the past. However, in 2016, they signed an agreement in which Ring promised never to use any trademarks similar to ADT’s. Alphabet’s (GOOG) Google ended up acquiring a 6.6% stake in ADT for $450 million last year. (See Amazon stock analysis on TipRanks).
Stifel Nicolaus analyst Scott Devitt has reiterated a Buy rating on Amazon as the company prepares to report its 1Q 2021 financial results on Thursday, 29 April. According to the analyst, the company is well-positioned to report a 40% increase in revenue and an operating margin of 6.2%.
“Growth in a post-COVID environment remains largely uncertain for Amazon and across the eCommerce landscape. Our 2Q revenue estimates are ahead of consensus as we see tailwinds stemming from strong growth in new Prime members and diversification across geographies and categories supporting the retail business as economies recover,” stated Devitt in a research note to investors.
Devitt has a $4,000 price target on Amazon, which implies approximately 17% upside potential to current levels.
Wall Street is bullish on Amazon’s prospects with consensus among analysts being a Strong Buy based on 33 unanimous Buy recommendations. The average analyst price target of $4,118.69 implies 20.33% upside potential to current levels.
AMZN scores a sturdy 9 out of 10 on the TipRanks’ Smart Score rating system, implying it is likely to outperform market expectations.
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