IP Law Daily, TRADEMARK NEWS: PR agency Multiply sues Elon Musk's X over trademark infringement, (Jul 24, 2024)

By Steven Melendez

The firm says it used X in its branding and held a trademark on a stylized X years for before Twitter rebranded.

A PR firm operating as Multiply sued X, the social media company formerly known as Twitter, for trademark infringement, saying it's held trademark rights to its own X logo since 2019. (DB Communications LLC v. X Corp., No. 5:24-cv-04402-VKD (N.D. Cal. filed July 21, 2024)).

DB Communications LLC began developing the logo in 2016 and used the X throughout its branding, including on its website, in client presentations, in an X analytics dashboard offered to customers, and in contracts and emails. Employees have referred to Multiply simply as "X" and themselves as "Xers," according to the complaint.

"In short, Multiply is X," according to the complaint. "Or at least it was."

But since Twitter rebranded to X in July 2023 after being purchased by Elon Musk, existing and potential clients have expressed confusion about whether there's some relationship between the two companies. Multiply operates social media campaigns for clients, and the former Twitter also offers marketing services to its advertisers, and the two businesses sometimes find themselves at the same trade shows and events scouting for business and appealing to the same publications for press coverage, according to the complaint.

"X (formerly Twitter) offers the same social media advertising and marketing services as Multiply and the same social media analytics services offered by Multiply," according to the complaint. "Just as Multiply displays its X Mark, X (formerly Twitter) displays its Infringing Mark prominently before each of the services it offers to the same prospective and existing clients that Multiply competes for."

For example, the former Twitter offers its own "X Analytics" services, according to the complaint.

Multiply reached out to the former Twitter in May 2024 about the alleged infringement, and the two companies agreed "to a two-month standstill to negotiate a potential resolution," but the former Twitter simply never replied to further messages and kept using its X branding, according to the complaint.

Multiply also finds itself "forced to use" the allegedly infringing X logo in some of its own materials, since it offers services to brands looking to reach customers through that platform. This "is inherently confusing, prejudicial to Multiply, and damaging to its brand," according to the complaint.

In general, Multiply has fielded several meetings with current and prospective clients who've expressed confusion about the two X brands. The alleged infringement has been "embarrassing" to Multiply, according to the complaint, and Multiply believes the issue has cost it business, with sales down 25% in the second half of 2023. The company is also concerned about association with the controversies surrounding Musk, which according to the complaint may cause some companies to shun association with Multiply out of fear others would be confused about which X they're doing business with.

"In the aftermath of Twitter’s rebrand to the Infringing Mark, Multiply’s routine meetings with existing clients to discuss the performance of their social media campaigns often shifted to damage control," according to the complaint. "Clients inquired about the similarities between the logos and Multiply acted quickly to quell client confusion over the apparent affiliation between the two companies."

Multiply sued for federal trademark infringement, false designation of origin under federal law, common law unfair competition, and California unfair competition. It asked the court to bar the former Twitter's future use of its X logo, an order requiring it to destroy infringing advertising materials, and an award of all profits from the alleged infringement. The company also asked for compensatory damages, treble damages for willful infringement, exemplary and/or punitive damages, interest, costs, and attorney fees.

The Case is No. 5:24-cv-04402-VKD.

Judge: DeMarchi, V.

Attorneys: Keith Joseph Wesley (Ellis George LLP) for DB Communications LLC.

Companies: DB Communications LLC; X Corp.

News: Trademark CaliforniaNews GCNNews