Elon Musk again came up with a policy that surprised Twitter social media users. Most recently, Elon has just changed the Twitter logo to ‘X’ since Monday (07/25/2023). This is also the end of the journey of Twitter’s iconic blue bird logo that has been used since this social media was first launched in 2006. In the new version, you can see a black ‘X’ icon on a white background when opening twitter.com. The logo is also visible at the top left near the “home” option. However, it seems that Elon’s policy this time is not smooth. Because, a number of experts say that his decision to rebrand the Twitter logo to X may bring a number of lawsuits filed against the Tesla and Twitter company boss. Even brand analysis says the social media is estimated to suffer a considerable loss of US$4-20 billion or Rp. 60-300 trillion! How come? How can Twitter’s logo and brand change to X bring losses? Here’s the explanation.
Why did Elon Musk change Twitter’s logo?
It is known that Elon has always succeeded with his trademark ‘X’, starting from the space technology company SpaceX, the Tesla model with the name ‘X’, and the online banking company also named X.com. With regards to Twitter, Elon is known to have agreed to a massive US$44 billion acquisition of the social media site in April 2022. Since the takeover of the company, Elon has actually hinted at changing the Twitter logo. Twitter CEO Linda Yaccarino said the logo change was part of a rebranding and introduced a major pivot for the microblogging platform. According to her, this will be a marketplace for goods, services and opportunities powered by artificial intelligence. Meanwhile, as reported by Reuters, the reason Elon is rebranding by changing the Twitter logo to X is because the number of advertisers on social media continues to decline. This is what is claimed to be the cause of Twitter’s cash flow becoming negative and the company’s debt burden getting bigger. Through his official Twitter account, Elon said that he wanted to change the Twitter logo and surveyed his millions of followers whether they would support changing the site’s color scheme from blue to black. Under Elon’s tumultuous tenure since he bought Twitter, the company has changed its business name to X Corp, reflecting the billionaire’s vision of creating a “super app” like China’s WeChat.
Losses for Twitter and the Threat of a Brand Lawsuit
Elon Musk’s policy to change the logo and brand to X seems to not only be a controversy among Twitter social media users, but also raises serious loss and legal issues. Brand analysis says Twitter is estimated to have suffered a substantial loss of US$4-20 billion or Rp60-300 trillion. “It took 15 years to gain that much equity around the world, so losing Twitter as a brand name is a significant financial blow,” Siegel+Gale brand communications director Steve Susi was quoted as saying by Fortune (29/7/2023). Not only that, it is known that two technology companies that have an unfavorable relationship with Elon, namely Microsoft and Meta, have both registered the X trademark long before the emergence of the X brand made by him. Microsoft has first pocketed the X trademark related to the Xbox video game system since 2003. Not only Microsoft, the Meta company also has a trademark that includes the letter “X” and was registered in 2019. Meta’s trademark for the white-and-blue X relates to “social networking services in the fields of entertainment, gaming, and application development”. While Microsoft’s trademark is related to its Xbox game console. A legal battle over intellectual property rights to the “X” logo may be inevitable. “There is a 100 percent chance that Twitter will be sued over this by someone,” trademark lawyer Josh Gerben was quoted as saying by Reuters. Gerben said that he counted nearly 900 active U.S. trademark registrations that already include the letter X, and these companies are spread across a wide range of industries. These trademarks protect things like brand names, logos, and slogans that identify the source of goods. Gerben mentioned that Meta and Microsoft are likely to sue Twitter if they feel that the new mark infringes on the brand equity they have built up in the letter.
So, what are the actual terms of trademark registration?
The case of Twitter’s logo change initiated by Elon Musk to ‘X” has shown how important the process of determining and registering the right brand is. The reason is that the change brings potential legal problems and financial losses to the company. It should be noted that in Indonesia itself, trademarks have been regulated in Law No. 20 of 2016 concerning Trademarks and Geographical Indications (Trademark Law). Where based on the Act, a trademark is a sign that can be displayed graphically in the form of images, logos, names, words, letters, numbers, color arrangements, in two-dimensional and / or three-dimensional form, sound, holograms, or a combination of two or more of these elements as a differentiator with goods and / or services produced by persons or legal entities in the trading activities of goods and / or services. However, the trademark must be registered in advance if you want to get legal protection for trademark rights in trade activities. Of more concern is how the trademark can be registered. Where a trademark cannot be registered if the trademark is proven:
- Contrary to state ideology, laws and regulations, religious morality, decency, or public order;
- Similar to, related to, or merely mentioning the goods and/or services for which registration is sought;
- Contains elements that can mislead the public about the origin, quality, type, size, variety, purpose of use of the goods and/or services for which registration is requested or is the name of a protected plant variety for similar goods and/or services;
- Containing information that is not in accordance with the quality, benefits, or efficacy of the goods and/or services produced;
- Does not have differentiating power;
- Is a public name and/or symbol of public ownership; and/or
- Contains forms that are functional.
What if the registered trademark is the same?
As explained above, Elon Musk’s decision to change Twitter’s logo and brand to X may be similar or identical to the marks registered by Meta and Microsoft. The possibility of similarity or likeness in these marks arises from the use of the dominant element ‘X’. Although the marks may be used in different industrial contexts, there is a chance that the element can give the impression of similarity in some aspects. These similarities include the shape, placement, writing or combination of elements, as well as the similarity of speech sounds contained in the marks. Related to these similarities, trademark registration can be refused under the following conditions:
- Represents or resembles the name or abbreviation of a famous person, photograph, or the name of a legal entity owned by another person, except with the written consent of the rightful owner;
- Is a copy or resembles the name or abbreviation of the name, flag, emblem, or symbol or emblem of a country, or national or international institution, except with the written consent of the authorized party; or
- Represents or resembles an official mark or seal used by the state or a government agency, except with the written consent of the authorized party.
KH Contact
This is the explanation of the issue of changing the Twitter logo by Elon Musk. Indeed, nowadays, we often encounter various kinds of trademark dispute cases where in these cases, the trademark made by one company is often similar or has similarities with other companies’ trademarks.
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Therefore, to avoid similar things, it is important to conduct a brand analysis in advance so that the brand created can meet the applicable provisions and at the time of registration is not rejected by the Directorate General of Intellectual Property (DJKI) Kemenkumham. To do so, you can leave it to Kontrak Hukum. We provide brand analysis services to ensure that the brand name you want to register, the brand logo or even how the brand is pronounced has not been registered or does not have similarities with registered brands. If it is confirmed to be safe, KH Buddy can also simultaneously register and renew the brand with a competent and officially registered IPR consultant, so it is guaranteed to be auto accepted by the DJKI! Let’s make your business brand affairs easier by visiting the KH Services – Brand page. If you have other questions, just consult with us at Ask KH or via direct message (DM) to Instagram @kontrakhukum.
