That ad agency, X Social Media, sued X. Corp in Florida on Monday, arguing that consumers are likely to to confuse their ad services with the Elon Musk-owned company.
The complaint, which was first reported by Bloomberg Law, states that X Social Media, LLC “has continuously used the X Social Media Mark in commerce since at least early 2016,” and that X Corp. was aware of X Social Media’s pre-existing rights to the trademark before its brand overhaul.
In the filing, X Social Media — an advertising agency service geared towards law firms — claims that it has invested over $400 million in advertising, $2 million of which was dedicated to brand awareness, and that X. Corp’s name change will be “financially and strategically harmful” to the Florida-based agency.
“In a short time, X Corp. has wielded its social media clout, marketing resources, and overall national notoriety to dominate consumer perception of its ‘X’ mark,” the complaint states.
It is seeking an order that would block X Corp. from continuing to use the X name and requested an unspecified amount of money damages.
Elsewhere on Monday, Musk was also sued for libel after amplifying posts baselessly suggesting Ben Brody, a recent graduate of the University of Riverside, California, was a government agent posing as a neo-Nazi. The lawsuit accused the billionaire of making “reckless false statements” and “promotion of disinformation,” and seeks $1 million in damages.
Texas firm Farrar & Ball attorney Mark Bankston, Brody’s legal counsel, wrote in an X post that Brody and his family were doxxed as a result of the conspiracy theory Musk promoted on his site, and had to flee their home during “weeks of terror.” Brody, he wrote, has a reputation now “catastrophically damaged” by the wealthiest man on the planet and has suffered mental anguish “at the crucial moment when he exits college and enters his career path.”
Despite his lawyers being informed of Brody’s defamation claim in August, Bankston has said that Musk declined to either retract his unfounded accusation or apologize for it.