- July 28, 2023
- Posted by: [email protected]
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Twitter’s recent rebranding to ‘X’ could lead to protracted legal disputes and substantial expenses, with potential lawsuits for trademark infringement in both the United States and international jurisdictions. According to Josh Gerben, a trademark attorney at Gerben Intellectual Property, the social media giant may face years of litigation and could spend over $100 million in legal fees to address these issues.
Gerben, in a thread posted on July 25, foresees a wave of trademark infringement lawsuits emerging against X in the coming weeks. He also expects that the international implications of the rebranding will be a significant concern for the company for years to come. The situation is complicated by the fact that other U.S.-based companies, including Microsoft and Meta, already possess trademarks for different products and services using the letter ‘X.’ Consequently, these companies could have legitimate grounds to pursue legal action against X.
Gerben emphasized that abandoning the valuable blue bird logo, synonymous with Twitter, in favor of a new trademark is an unprecedented move in the history of branding. He opines that had Elon Musk retained the Twitter brand, the company would not have faced such massive expenses justifying its trademark usage for various purposes.
Elon Musk, the former CEO of Twitter, announced the rebranding on July 23, replacing the iconic blue bird with a black and white ‘X’ logo. The transformation came after Musk established X Corp as the parent company of Twitter in March. As of the publication date, the platform still retains its former name in the search bar and continues to display the blue ‘tweet’ button and retweet counter.
The rebranding has drawn criticism on X, with many users expressing dissatisfaction with the decision. Musk himself was unable to provide a definitive answer regarding the new name for a retweet in a thread posted on July 24. Additionally, he hinted at ambitious plans for X, aiming to make it a platform where users can conduct their entire financial transactions and services affecting a significant portion of the global financial system.
This move is the latest in a series of controversies involving Twitter, which underwent significant changes after Musk’s takeover in October 2022 following a $44-billion agreement. Musk made various alterations to the platform, including dismissing members of the executive team and phasing out the legacy verification system, replacing blue checkmarks with paid options.
Though Musk briefly changed the Twitter logo to that of the Dogecoin shiba inu in April, many users suspected it was a temporary change. However, the rebranding to X suggests a more permanent shift in the company’s visual identity, potentially impacting its headquarters in San Francisco.
Under Musk’s leadership, Twitter’s U.S. advertising revenue reportedly plummeted approximately 59% from April to May compared to the same period in 2022. In May, former NBCUniversal executive Linda Yaccarino assumed the role of CEO, while Musk remains actively engaged in posting on X.
Twitter’s rebranding to X could be mired in legal disputes and result in substantial costs for the company. The contentious move, combined with its ambitious plans for financial services, has raised concerns and criticism among X users and trademark experts alike. As the situation unfolds, the impact of this significant shift in branding strategy remains to be seen.
