Josh Gerben says X Corp could spend millions of dollars in litigation over the X trademark.
In a world where social media platforms constantly evolve, Elon Musk's decision to rebrand the well-known Twitter logo with a simple "X" might lead to unexpected problems.
An estimated $100 million could be spent dealing with lawsuits regarding the logo change, predicts Josh Gerben, a well-known trademark attorney at Gerben Intellectual Property.
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As Gerben predicted in an X thread on July 25th, X Corp might deal with a series of trademark infringement lawsuits domestically. According to Gerben, international litigation could also become a "very big issue" for several years.
The problems could start because several American companies, such as Microsoft and Meta, already hold trademarks for "X" for varying products and services, laying the foundation for potential lawsuits against X Corp.
If Elon had stuck with the Twitter brand, his company would likely not spend a dime to justify its Twitter trademark on just about anything he wanted to do with the brand.
The rebranding was revealed by former Twitter CEO Elon Musk on July 24th, resulting in the iconic blue bird logo's replacement by a stark black and white "X."
Following the rebrand, on July 25th, Elon Musk unveiled plans to make Twitter one of the biggest "everything apps" in the world. Elon Musk claimed that X Corp took over Twitter to bolster "freedom of speech." On top of that, the billionaire claimed that X will soon incorporate a handful of financial services.
The rebranding is just the latest in a series of dramatic changes for one of the world's leading social media platforms. Following a $44 billion agreement, Musk took the helm of Twitter in October 2022. He soon made radical decisions, laying off staff members of the executive team and replacing Twitter's traditional verification system with multiple paid options.
Interestingly, the Twitter logo was briefly changed to Dogecoin (DOGE) in April. However, this time the change to "X" seems to be a prominent solution, shifting the firm's focus from the communication platform to "everything app."
