Elon Musk’s recent rebranding of Twitter through X Corp. has landed in legal hot waters. Florida-based advertising agency, X Social Media LLC, known as XSM for clarity, has lodged a federal lawsuit against X Corp. The agency alleges that Musk’s corporate giant has violated Florida’s common law due to “unfair competition and trademark and service mark infringement.” Furthermore, they claim that the rebrand infringes on the state’s Deceptive and Unfair Trade Practices Act.
The core of XSM’s argument is the continued use of their registered trademark, “X SOCIALMEDIA”, since 2016. The agency highlights revenue losses directly connected to X Corp.’s rebranding and subsequent usage of the “X” mark.
However, the legal strength of XSM’s claim remains to be determined. Given the saturation of “X” trademarks, it’s a challenge for any singular X-branded entity to push a claim against another. Alexandra Roberts, a law professor, previously indicated to The Verge the complexities involved in such “X”-related trademark disputes.
Trademark disputes are not uncommon in the business landscape. Still, when high-profile figures and major rebrands are involved, it amplifies the conversation around intellectual property rights. For marketers and companies, it’s a reminder of the importance of thorough market research before any significant branding changes.
