The recent news about Zoom and the stock market is a perfect example of why trademarks are important, and also why trademark law does not allow similar marks for similar goods or services. Two companies with the same name – Zoom – both offer technology goods or services. Zoom Video Communications is the company behind ZOOM video conferencing services, which we have all been using for work meetings, exercise classes, and video chatting with friends these past weeks, and has increased significantly in value.
However, investors were also buying up stock in Zoom Technologies, which researches, develops, and sells electronic-communication products for mobile phones, but has not updated its financial information with the SEC since 2015. On March 25, 2020, the SEC suspended trading of Zoom Technologies, noting the rampant consumer confusion in the stock market and concern about the lack of current financial information for that company.