Elon Musk’s X Corp is facing its first lawsuit related to its name change. X Social Media, a Florida-based company, has accused X Corp of trademark and service mark infringement due to its use of the letter “X.”
Musk rebranded Twitter as “X” in July, which sparked concerns of potential legal challenges.
X Social Media, an advertising and social media services company connecting law firms and clients since 2016, argues that its frequent emphasis on the “X” portion of its mark in advertising and other materials has been affected by the media coverage surrounding X Corp’s rebranding.
It claims consumers need clarification, believing that X Corp offers advertising services similar to X Social Media’s.
The lawsuit suggests that the confusion has already led to revenue losses for X Social Media and will likely cause further financial detriment.
Additionally, the lawsuit alleges that X Corp filed multiple trademark applications for services closely related to those offered by X Social Media despite being aware of the latter’s existence.
X Social Media sent X Corp a cease-and-desist letter in August 2023, which the company allegedly disregarded.
As a result, X Social Media seeks an injunction to prevent X Corp from marketing, offering, selling, or distributing services using the “X” mark.
The plaintiff also seeks damages equivalent to three times its losses or the defendant’s profits. This lawsuit marks the beginning of potential legal challenges for X Corp’s rebranding.