X Social Media LLC, a Florida-based advertising agency, has lodged a lawsuit in federal court against Elon Musk's corporation, X Corp, citing the firm's renaming of Twitter to X as the main issue. According to the lawsuit, X Corp has violated Florida common law under charges of unfair competition, trademark and service mark infringement, and also breached the state's Deceptive and Unfair Trade Practices Act.
X Social Media, known hereafter as XSM, claims in its formal complaint that it has been using its registered trademark, “X SOCIALMEDIA,” uninterrupted since 2016. The company asserts it has already witnessed a significant loss in revenue, which it directly attributes to X Corp's rebranding and adoption of the mark ‘X.'
Impact of Renaming Twitter
The renaming of Twitter has ignited a serious conflict within the field of social media and advertising, with rival companies claiming it has caused marketplace confusion and subsequently, financial losses. The decision, undertaken by X Corp, has potentially infringed upon registered trademarks, causing an uproar among other businesses in the industry and paving the way for possible legal repercussions.
Possible Outcomes of Legal Dispute
However, the strength of XSM's case remains uncertain. As stated by law professor Alexandra Roberts earlier this year, the saturated market of “X” trademarks could potentially complicate any attempts by a company to uphold a claim against another firm using a similar mark— including Elon Musk's X Corp or X Social Media.
Elon Musk has an obsession with the letter X. Alongside X Corp and rebranding Twitter, his SpaceX exploration company also uses it. The billionaire also launched xAI this year as an AI competitor to OpenAI, Meta, Google, and Microsoft.
The company's website states that xAI is “pro-humanity” and will adhere to ethical principles and values in its research and development. It also says that xAI will work closely with Musk's other companies, such as Twitter, Tesla and SpaceX. xAI is separate from X Corp, Musk's holding company that owns Twitter.