Formerly known as Twitter, “X” under the new leadership of Elon Musk has had a rocky start with a loss of almost 50% of ad-revenue.
Unfortunately for X Corp, more trouble seems to be on the horizon relating to their new app name and logo “X”.
There are nearly 900 companies that own trademarks for variations of the letter “X”. So, it is not surprising that both opportunistic and legitimate plaintiffs will try to sue the multi-millionaire brand.
X Corp has filed to register the name “X” for use mainly in association with social media, business data analytics, market research and advertising services.
Unsurprisingly, there is already a company under the name “X Social Media” that claims to have used the mark in identical and closely related services for over eight years.
X Social Media claims to have spent years labouring away to successfully cultivate brand awareness amongst consumers. They use the mark “X” in a huge portion in advertising, blogs, and newsletters such as the “the X Blog” and “X Weekly”. Apparently, the company has invested over $400 million in advertising, with over $2 million to build brand awareness.
In August 2023, X Social Media allegedly sent a cease-and-desist to X Corp but it was disregarded.
X Social Media wants to prevent X Corp from marketing, offering, selling, or distributing services using the “X” mark alongside damages equivalent to three times its losses.
Could X Social Media be successful in their claims?
Well, first they have to demonstrate that consumers are confused by X Corp’s use of its logo. From there the courts will assess the degree of similarity of the logos and the proximity in the services offered by the two companies.
X Social Media claims that consumers may be confused, honestly believing that X Corp offers advertising services similar to those provided by X Social Media. Although its logo looks completely different from the one used by X Corp, apparently the frequent emphasis on the “X” portion of its mark throughout its advertising has already caused a loss of revenue and is likely to cause further financial detriment.
If X Social Media is successful in their claim, perhaps X Corp will return to its former name, Twitter. If so however, it is likely to be very costly re-branding for X Corp Pty Ltd. The typical remedy for trademark infringement is an account of profits, meaning that X Corp may have to pay all of its profits while infringing the mark to X Social Media.
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Trademark law is the best area of IP law that offers protection, strategy, and leverage. Here at IP Partnership Lawyers, our team of solicitors are experts in Trademark registrations in both Australia and internationally, and we also assist clients with Trademark oppositions and the removal of Trademarks. Please contact one of our expert trademark lawyers today if you require any assistance with registering a trade mark or defending your mark against unauthorised use.
This blog provides general information and is not intended as legal advice specific to your circumstances. Please feel free to seek our professional legal advice if you have any questions, concerns and/or queries.