Platinum Software Doesn’t Want to Share Good Name

Four years ago, Platinum Software Corp. figured that its customers would never mistake the company’s computer accounting programs for the database tools made by a similarly named high-technology firm in Chicago.

But now, as both companies expand into some of the same cities worldwide, the Orange County software maker decided that Platinum Technology Inc. is infringing on its trademark name.

The Irvine firm charges in a lawsuit, filed in U.S. District Court in Santa Ana last Thursday, that the Chicago company is using “Platinum” in connection with its own recently manufactured business programs.

Platinum Software seeks unspecified damages and an order forcing the Illinois company to change its name.

Even though Platinum Software doesn’t consider the Chicago company a direct competitor, executives at the Irvine firm say the similar monikers confuse their customers.

“We both have offices in the Chicago area and we both have offices in Southern California,” said Perry Tarnofsky, Platinum Software’s general counsel. “We’re tired of getting calls to our support center regarding their products.”

In 1993, the two firms signed an agreement that allowed both to use “Platinum” in their corporate names. At the time, the companies sold different products to different markets.

The complaint asserts that conflicts cropped up as both companies expanded into some of the same geographic areas and as certain new products became similar enough to confuse customers.

Platinum Software, with 375 employees, began selling its accounting and business software to larger companies in more U.S. and foreign cities.

But, the suit alleges, Platinum Technology, with nearly 4,000 employees worldwide, grew more rapidly and pushed into the Irvine firm’s territories. In addition, the suit contends, the Chicago firm added business software to its line of database and system management tools sold to major corporations.

“PTI’s expansion of its business has resulted in actual confusion in the marketplace, rendering the parties’ agreement voidable,” the suit asserts.

Michael Wyatt, Platinum Technology’s general counsel, said the lawsuit has no merit.

“The problems over trademark names are getting really common in this industry,” Wyatt said. “We haven’t done anything wrong, so we’re not too worried.”