Invesco slapped with ETF trademark suit

Jul 23, 2010 @ 9:01 am

By Bloomberg

Invesco Ltd., the Atlanta-based investment management company, has been sued by a Boston-based trust claiming infringement of its trademarks for exchange- traded funds.

Select Sector SPDR Trust said Invesco began marketing its PowerShares funds using the same XL ticker symbols SPDR has been using, in a complaint filed today in U.S. District Court in Houston.

Invesco introduced nine ETFs in April with the symbol XL that trade on the Nasdaq Stock Market, SPDR said. The trust said it has used XL for more than 10 years and that each of its ETFs traded an average of 25 million shares a day in 2009. In an example from the complaint, SPDR said its technology ETF uses the symbol XLK while Invesco’s PowerShares tech fund has XLKS.

Invesco adopted the XL symbols “with the intent to obtain free publicity from the trust’s efforts and immediate market recognition,” John Fraser, the lawyer for SPDR, a unit of State Street Global Advisors Inc., wrote in the complaint.

Ivy McLemore, a spokesman for Invesco, said it is company policy not to comment on litigation.

Invesco rose 96 cents, or 5.3 percent, to $19.26 at 4:15 p.m. in New York Stock Exchange composite trading.

The case is Select Sector SPDR Trust v. PowerShares Exchange-Traded Fund Trust II et al., 10-02589, U.S. District Court, Southern District of Texas (Houston).

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

DOL fiduciary rule opponents and supporters sound off on Jan. 1 deadline

Senior reporter Mark Schoeff Jr. and managing editor Christina Nelson discuss the latest batch of comment letters on the regulation, this round focused on timing of the full implementation date.

Latest news & opinion

Big gains attract new money to emerging markets, but should investors stay?

An estimated $6.7 billion has flowed into emerging-market stock funds and ETFs so far this year, according to Morningstar.

Attorney blasts Finra after regulator loses insider trading case

Lawyer says it was 'slimy' of Finra to publicize the case while it was still being litigated.

Will Jeffrey Gundlach's Trump-like approach on Twitter work in financial services?

The DoubleLine CEO's attacks on Wall Street Journal reporters is igniting a discussion on what's fair game on social media.

Fidelity wins arb case against wine mogul but earns a rebuke from Finra

In the case of investor Peter Deutsch, Fidelity doesn't have to pay any compensation, but regulator said firm put its interests ahead of his.

Plaintiffs win in Tibble vs. Edison 401(k) fee case

After a decade of activity around the lawsuit, including a hearing before the U.S. Supreme Court, judge rules a prudent fiduciary would have invested in institutional shares.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print