Judge tells bank: Change your name
Rival Alliance Bank already uses the name New Century chose
Alliance Bank, of Broomall, has won a preliminary injunction from Federal Judge Joel Slomsky ordering New Century Bank, Phoenixville, to halt plans to rename itself as Customers 1st Bank. (Judge's decision is here.)
The two banks run competing branch networks in Philadelphia's western suburbs. New Century boss Jay S. Sidhu, who formerly ran Sovereign Bank, said in April his bank was changing its name to Customers 1st Bank to avoid confusion with failed lenders in California and New York with similar names. But Alliance complained it had already trademarked the name "Customers First" and uses it on its checking accounts.
Slomsky, in his ruling, noted the U.S. Patent and Trademark Office had refused to trademark the name for Sidhu's bank. He called New Century's proposed logo "strikingly similar" to one Alliance already used. The judge ordered New Century to refrain from using the name, and to post a $150,000 bond, pending a permanent decision or additional court action.
Sidhu has raised $67 million from local and foreign investors to expand his bank into New York, New Jersey and other markers. Sidhu and other New Century officials weren't immediately available for comment on whether they'll appeal or find a new name. Update: "We're very pleased," Alliance chief executive Dennis Cirucci said.