Twitter’s rebrand to X is currently underway, with significant changes being made to the company’s identity. The name and iconic bird logo have been removed from the company’s San Francisco headquarters, and the familiar blue bird has been replaced with an “X” on twitter.com. However, this rebrand could result in legal and financial challenges for Twitter, which has already faced difficulties due to a significant drop in ad revenue.
One of the primary challenges the company may face is the fact that there are hundreds of companies, including Microsoft and Meta, that own trademarks for variations of the letter “X.” This opens the door to potential lawsuits and legal complications for Elon Musk, the driving force behind the rebrand. Shubha Ghosh, a law professor at Syracuse University, emphasizes that lawsuits are common when major companies undergo rebranding efforts. He also notes that the choice of “X” as the new name is problematic because it lacks distinctiveness, making it more vulnerable to potential legal action.
Trademark attorney Josh Gerben, who has conducted thorough research on the subject, discovered that nearly 900 other companies hold trademarks related to the letter “X.” While not all of these companies may have legitimate claims against Twitter/X, it still leaves the rebranded company exposed to potential lawsuits. Gerben predicts that there is a high probability of Twitter/X being sued by both opportunistic and legitimate plaintiffs over the new name. The legal fees and settlement costs associated with defending the rebrand could amount to tens or even hundreds of millions of dollars.
In addition to legal challenges, Twitter’s new branding may also face difficulties in terms of defending its trademark internationally. Gerben points out that the chance of Elon Musk successfully registering a trademark for “X” across all the services and countries he intends to provide them in is very low. This adds another layer of complexity to the rebranding process and raises concerns about the company’s ability to protect its new identity worldwide.
Even if Twitter manages to overcome these legal challenges, there are substantial business risks associated with abandoning such a globally recognizable brand. Industry analysts have estimated that the name change alone could result in the loss of billions of dollars in brand value for Twitter, which has already been impacted by Musk’s actions. The rebranding effort could further diminish the company’s value, utility, and uniqueness in the digital space.
Ari Lightman, a professor of digital media marketing at Carnegie Mellon University, believes that Twitter’s problems extend beyond potential legal issues brought on by the rebrand. He points to the rise of competitors such as Threads and other platforms that threaten Twitter’s dominance. Lightman also highlights the challenge of resocializing a concept with the global population, as tweets have become synonymous with the idea of blogging or microblogging. This indicates that rebranding Twitter as X may face resistance from users who have grown accustomed to the platform’s current identity.
In conclusion, Twitter’s rebranding efforts to become X come with substantial risks and challenges. Legal disputes from companies owning variations of the letter “X” could lead to an onslaught of lawsuits and significant financial burdens. Defending the new brand internationally and maintaining its distinctiveness will also be an uphill battle. Moreover, abandoning the globally recognizable Twitter brand could result in the loss of billions of dollars in value. Ultimately, the success of this rebranding venture will depend on Twitter/X’s ability to navigate these obstacles while retaining its user base and attracting new audiences.
