Holyoke-based PeoplesBank has filed an Unfair Competition and Trademark Infringement complaint in the U.S. District Court in Springfield against People’s United Bank and the two Massachusetts banks that it owns, Bank of Western Massachusetts and Flagship Bank and Trust, for false advertisement and false designation of origin, infringement of state-registered service mark, and unfair and deceptive practices.

PeoplesBank is a state-chartered community bank founded in Holyoke in 1885. People’s United Bank is a stockholder-owned, federally chartered bank based in Bridgeport, Conn., which recently acquired the Bank of Western Massachusetts and Flagship Bank and Trust through the purchase of their corporate parent the Chittenden Corp. People’s United Bank filed a complaint against PeoplesBank in the U.S. District Court in Hartford, Conn. on Dec. 8, requesting the court to rule, in part, that it could use the brand People’s United Bank in Massachusetts.

“It is clear that People’s United Bank is intent on promoting its brand in Western Massachusetts despite the fact that there are two established brands of PeoplesBank and United Bank already operating in the market,” stated Attorney Donald S. Holland, who is representing PeoplesBank in its complaint. “Its promotional signage and advertisement would undoubtedly lead to the misperception that there was a merger between PeoplesBank and United Bank. It would cause significant confusion amongst consumers regarding whether they could bank at all three of the institutions should they have a relationship with one of them. There is already measurable confusion caused by the overlapping of media markets and the close proximity of existing branches. Therefore, PeoplesBank regards any attempt by People’s United Bank to rebrand its assets in Western Massachusetts using the term “People's” as an infringement upon our brand.”