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X Corp., Formerly Twitter, Faces Federal Lawsuit Filed by Marketing Agency

X Corp., the entity previously recognized as Twitter, is facing a federal lawsuit in Florida filed by X Social Media, a legal marketing company, alleging trademark infringement. The legal dispute centers around X Corp.’s recent rebranding initiated by owner Elon Musk, who transitioned the company’s name from Twitter to X in July. X Social Media contends that this change is likely to cause consumer confusion.

This legal confrontation signals a potential wave of trademark disputes involving Elon Musk’s company, particularly over the use of the letter “X,” a common element in various tech brandings. “X” is featured in hundreds of federal trademarks, including those owned by prominent companies like Microsoft and Meta Platforms. While X Corp. has recently sought U.S. trademarks covering the letter, this move has triggered legal challenges.

X Social Media, based in Windermere, Florida, specializes in mass-tort litigation advertising. Founded by Jacob and Roseanna Malherbe in 2015, the agency aimed to connect Florida Panhandle residents with attorneys, particularly in the aftermath of the Deepwater Horizon oil spill in the Gulf of Mexico.

The legal complaint asserts that X Social Media has been using the “X Social Media” name since 2016, with ownership of a federal trademark covering it. The agency claims to have invested over $400 million in Facebook advertising to engage potential clients.

According to the lawsuit, Twitter’s rebranding has already led to customer confusion, resulting in revenue loss for X Social Media. The filing contends that X Corp. has rapidly utilized its social media influence, marketing resources, and national notoriety to establish dominance in consumer perception of its ‘X’ mark.

X Social Media is seeking legal remedies, requesting the court to compel Musk’s company to cease using the “X” name and claiming unspecified monetary damages.

As of now, X Corp. has not responded to requests for comments on the complaint, and X Social Media has chosen not to provide public statements at this time. This legal clash sets the stage for potential landmark decisions on the intersection of branding, trademark, and corporate identity in the tech industry.

 

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