The following article, part of CU Journal's July 13 Bonus Content, is an extended version of the way it appeared in print.
HARRISBURG, Penn. — Members 1st FCU has asked a federal court here to validate its trademark to the distinctive red "M" it has used to promote its brand the past six years amid a promotion rolled out last month by a re-branded Metro Bank, which uses a similar red "M."
In a suit filed last month, the $1.7 billion credit union claims that Metro Bank-formed by the merger of Commerce Bank and Republic First Bank-is intentionally piggy-backing on its successful M campaign to steal customers with new ads and other marketing material. "We just feel we need to defend our brand," said George Nahodil, vice president for Members 1st.
Members 1st, based in nearby Mechanicsburg, Penn., obtained a trademark on the distinctive "M" from the U.S. Patent and Trademark Office on January 11, 2006.
The Metro Bank M has a break in the left side of the "M", while the Members 1st M has a break on the right side to form part of the letter "M" as "1st."
The symbols, which run on Members 1st billboard and TV ads, as well as on statements and all print material, are so similar that some consumers have mistaken the credit union for the bank, according to Nahodil. "We even had one customers for the new bank c ome into one of our branches and try to make a transaction," he said.
"This is very confusing to consumers and our members," said Nahodil.
Earlier this year, the newly formed bank began changing over its signs to Metro Bank, which bear the distinctive red M. Since then, the $2 billion bank, which operates many branches a stone's throw from Members 1st branches, has advertised in most of the same local media using the similar "M," according to the suit.
Lawyers for Metro Bank did not return phone calls last week.
In its suit Members 1st notes that the businesses of the two institutions are not only identical, but overlap. "The geographic area in which Members 1st does the vast majority of its business completely overlaps the same area in which the former Commerce Bank (now Metro Bank) does it business. In fact, Metro Bank branches are located as close as o.2 miles from branches of Members 1st," says the suit.
The big red "M," states the credit union, has come to symbolize good service in the surrounding market. "Since adopting its red 'M' service mark more than six years ago, Members 1st has doubled its assets and increased its number of members by nearly 75%, much of which can be attributed to Members 1st's careful, extensive, well-thought-out and well-executed marketing plans featuring, among other things, its red 'M' service mark," claims the suit.
