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Buy-now-pay-later provider Zip Co Limited (ASX: ZIP) has settled its trademark dispute with non-bank lender Firstmac Limited by acquiring the registered trade mark at the centre of the case, allowing the company to continue using the "Zip" brand in Australia.
The settlement, announced to the ASX today, reverses the effect of a High Court of Australia judgment handed down just eight days earlier on 13 May that had required Zip to cease using the "Zip" mark in Australia within 28 days.
Under the deal, Zip has acquired the registered trade mark for "ZIP" from Firstmac.
The financial terms of the settlement are confidential, although Zip has told the market the amount is "not material to the Zip Group" and does not affect its FY26 guidance.
Zip also confirms it has no further liability for damages or costs arising from Firstmac's proceedings.
The resolution comes after the High Court found against Zip in its long-running trademark dispute with Firstmac, which holds the ZIP mark in connection with financial services.
That 13 May judgment had prompted Zip to disclose it was "considering all options available" while flagging that its US business - which represents about 80 per cent of divisional cash earnings - was unaffected by the dispute, as was its New Zealand operation.
Zip last week said it was prepared for the adverse High Court decision, adding that it would use the opportunity to "evolve" its Australian brand.
The prospect of a forced rebrand in Australia had introduced significant uncertainty for a company that has built substantial brand recognition under the Zip name across its payments platform.
By acquiring the contested mark outright, Zip has sidestepped the need to rebrand domestically.
Firstmac, which is one of Australia's largest non-bank lenders, has held the ZIP trademark since 2004, using it to market home loan products.
While the company discontinued its ZIP home loan products to new customers in 2014, the company continued to manage those loans for existing borrowers.
However, in 2016, Zip Co unsuccessfully challenged Firstmac’s trade mark registration after pinning its hopes on winning the case on the basis of the trademark's "non-use" by Firstmac.
A second challenge from Zip in 2019 ultimately led to the High Court decision last week which affirmed Firstmac's rights to the brand.
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