Trademark Law and Twitter's Rebrand to X
In a surprise move, Elon Musk announced on July 25, 2023 that he was rebranding Twitter to X. You can read more about that here, from Fast Company, who cited critics that predicted that the rebrand was destined to fail. This decision has been met with mixed reactions, with some praising Musk for his boldness and others questioning the legality of the rebrand. Here just over three months later, X remains.
From a trademark law perspective, there are a number of potential problems with Twitter's rebrand to X. First, the letter X is a very common symbol and there are
hundreds of registered trademarks for “X” in international class 009 – the same class of goods and services claimed by X Corp. Those include Microsoft, for its XBox gaming consoles, among others. Though an application has been submitted, Musk and company do not have a trademark registration for the letter X, and accordingly, they could be sued for trademark infringement by these other companies.
October Lawsuit
At least one such lawsuit has already been filed. Reuters reports that in early October, X Social Media, a Florida-based ad agency focused on mass-tort litigation, sued X Corp. for trademark violations resulting in market confusion among consumers and loss of revenue. X Corp. undoubtedly has the resources to wage a court battle, but time will tell how this dispute will ultimately be resolved.
But even if Musk had a trademark registration for the letter X, it is still possible that it could be sued for trademark dilution. Trademark dilution occurs when the use of a trademark by one company damages the distinctiveness or reputation of another company's trademark. In the case of Twitter's rebrand to X, it is possible that the use of the letter X could damage the distinctiveness or reputation of other companies that have trademarks for the letter X, as is the perspective of X Social Media.
In light of these current and potential future legal problems, it will be interesting to see what plays out with this rebrand. One would imagine that Musk consulted experienced trademark attorneys to assess the risks of the rebrand and to develop his strategy for protecting his trademark rights and avoiding troublesome legal disputes. However, the only evidence that we have seen of this is the assignment of the registered Twitter trademarks and pending trademark applications from Twitter, Inc. to X Corp. Corporation.
In addition to the legal risks, there are also a number of practical considerations that the company will need to consider, now that it has rebranded from Twitter to X. For example, Musk and company have the uphill battle of educating its users–and the general public–about the new name and logo. Twitter is synonymous with short-form text/visual content, often referred to as microblogging. Three months later, many people are refusing to stop calling the platform “Twitter.” Time will only tell if the rebrand was worth the effort.
Conclusion
Twitter's rebrand to X is a bold move that could have significant legal and practical implications. Musk seems to be a tech-savvy leader with the wherewithal to consult with the proper trademark attorneys to assess the risks of the rebrand and to develop a strategy for protecting his companies. He certainly has the financial resources at his disposal to fight any battles that come his way. And at this point, the company remains X.
