On Wednesday, Australia Post argued before a Federal Court judge in Melbourne that Digital Post Australia (DPA) was too similar a brand name to its own. Australia Post's digital service is called

The judge, however, rejected a request for an interlocutory injunction to immediately stop DPA from using its name. A trial is scheduled for next month.

Alex Twomey, general manager for Australia Post's external affairs, said the case isn't about DPA starting a competing service but its use of the words "Post" and "Australia" together, which are leveraging on its brand. "Our view is that their name is very similar to ours," he said.

The case comes at a time when both Australia Post and DPA said they would launch digital mailbox services within two weeks of one another last month. Both will be competing to sign up bulk mailers as well as for preference with consumers.

"This is a very important battle," said Ivor Ries, an analyst with E.L. & C. Baillieu Stockbroking. "The battle will be fought with the consumer, and the one that has best offering at the consumer end will be the winner."