The small British research firm that forced Google to drop its Gmail brand name in the UK in a dispute over trademarks has abandoned its own version of the service as it prepares for the next stage of its campaign to protect its rights.
Independent International Investment Research (IIR), led by chairman and chief executive Shane Smith, stressed that the measure - which will entail limited job losses - was a temporary one and said the board of his company is “resolute” in its determination to continue its stand against Google’s use of the Gmail trademark.
Mr Smith also accused Google of continuing to use the Gmail trademark in the UK, despite its pledge last October to drop it, and claimed it was the internet giant’s “intention to make the process of protecting our trademark as long and as expensive as possible”.
IIR, which is listed on London’s junior AIM market and employs staff of about 40 worldwide, said there would be some redundancies at the company as a result of the move but declined to go into detail.
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“We are temporarily withdrawing our Gmail services. It means we are not offering new clients the service and we are withdrawing it from our existing customer base,” Mr Smith told Times Online this morning, adding: “This is essentially an issue of time, money and energy.”
Mr Smith added that he was currently still in negotiations with a number of hedge fund investors, who would probably take a stake in his company in exchange for providing the financial backing for his pursuit of the rights to Gmail.
As well as pursuing its legal claim, IIR will continue to lodge trademark applications for its Gmail and oppose any applications launched by Google. Abandoning Gmail in the short term will have no impact on its claim, it said.
This is the latest twist in an at times heated dispute between the two companies which has dragged on for almost two years. IIR, which has a stock market value of less than £3 million, caused something of a sensation when it appeared last October to have won its case, at least in the UK.
The company claimed that it launched “G-MailTM web based email” in May 2002 - nearly two years before Google unveiled its own branded e-mail service, known at “GMailTM”.
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IIR’s version of G-Mail was developed by one of its subsidiaries, Pronet, which specialises in research about the currency markets for banks and other financial institutions.
Google has always asserted its own right to the Gmail trademark and when it said last October that it would switch from Gmail in the UK - to Google Mail instead - it said this was a voluntary measure designed to avoid “distraction and confusion” for its users.
It continues to dispute IIR’s claims to the trademark and said the name change will not affect the way in which Google Mail users access or send mail.
The internet giant has also suggested that IIR’s claim is financially motivated and has no chance of legal success.
Google was not immediately available to comment this morning.