The Zip Co Ltd (ASX: ZIP) share price is up 4% after the buy now, pay later business announced positive news with its Australian trade mark.
Zip is one of the larger buy now, pay later businesses in Australia and the US.
Trade mark agreement
On 13 May 2026, Zip announced that the High Court of Australia’s judgement in proceedings surrounding Firstmac’s trade mark infringement claim against Zip in Australia.
The outcome of that judgement requires Zip to cease using the Zip trade mark in Australia, within 28 days. This didn’t impact Zip’s US business (representing 80% of divisional cash earnings) or Zip’s New Zealand business.
Zip said it would evolve its Australian brand, products and services.
But, today, it announced it will continue using the Zip brand in Australia, having reached a settlement with Firstmac.
Zip will acquire the registered trade mark so that it can continue to use the name ZIP in Australia.
It said the terms of the settlement agreement are confidential, but Zip has no further liability for damages or costs relating to Firstmac’s proceedings.
The ASX buy now, pay later share also confirmed that the amount it’s paying for this settlement is “not material to the Zip Group and does not affect Zip’s FY26 guidance”.
Outlook for the Zip share price
Zip shares have still more than halved since October 2025, so it’s a lot cheaper than it was.
The business is growing earnings in the US at an impressive rate, and it still has plenty of growth potential left.
It’s not the sort of business I’d buy for my own portfolio, but it keeps growing at the rate it has up until now then it could be one to watch for the foreseeable future, assuming customers continue their track record of largely making payments on time.
However, for me, there could be other ASX shares that make better buys today.
