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Why Twitter/X is a Unique Example of Rebranding

If you use social media or keep up with the news, you are probably aware of one of the most publicised rebrands in recent years. As of July 2023, Twitter was officially rebranded as “X” as part of Elon Musk’s plan to turn the social media app into a one-stop-shop digital platform. Amongst the madness and confusion, many businesses are wondering how it is possible to undergo a successful rebrand, particularly for such a large company with a prominent reputation. This article will explain why you might consider rebranding and some critical points you should keep in mind before doing so.

How Did Twitter Achieve This?

X, formerly known as Twitter, has quite a large reputation. With this in mind, it is crucial to remember that a brand’s goodwill and reputation are potent commercial tools, especially from the perspective of trade mark law. For instance, having a substantial reputation like X can give you the ability to undergo a significant rebrand without losing customers.

The fact that the ‘Twitter to X’ rebrand is so public means the company can spend little effort informing their current customers of the new brand. However, most businesses do not have this luxury, and rebranding is often a last resort.

Why Should I Consider Rebranding?

There are several reasons why you should rebrand your business. Although, most of them will fall under the presumption that you have encountered some issue with your current brand. For example, you might be struggling to stand out in a competitive market. Alternatively, your current brand may infringe on a third party’s registered trade mark.

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What Should I Keep in Mind When Rebranding?

Loss of Reputation and Goodwill

Whatever the reason may be, rebranding is a challenging prospect to navigate. One point to consider is a potential loss in your current brand’s reputation and goodwill, which can be frustrating when you work tirelessly to build them up. Furthermore, keep in mind that you need to invest time and money in promoting your rebrand to make sure your customers are aware of the change.

You could attempt to undergo a very public rebranding process like X. However, this will require investing a lot of time and money in promoting the rebrand. Therefore, plan out how you will inform your customers when making the transition to the new brand as smooth as possible. 

Consider Your Registered Trade Marks

Trade marks are badges of origin for a business that helps consumers to identify the source of particular goods and services. Keep in mind that all registered trade marks are brands, but not all brands are registered trade marks! If you start using a new brand as a trade mark for your business, that means that you are starting to accumulate unregistered trade mark rights. These rights refer to the reputation that you are building so that customers will associate that trade mark with your new business. 

However, unregistered trade mark rights do not entitle a business to allege trade mark infringement. This is why registration is so necessary! 

If you decide to rebrand, consider whether your trade mark is registrable, or you might find yourself back at square one.

How to Determine if a Trade Mark is Available and Registrable

You must apply to register your trade mark with IP Australia. As part of the application process, IP Australia will examine your trade mark to determine if it is registrable. Understanding what IP Australia considers “registrable” as a trade mark is a key part of choosing a new brand. Some of the reasons why IP Australia may reject a trade mark include if the trade mark is:

  • too similar to a pre-existing pending or registered trade mark;
  • not distinctive enough to be considered a trade mark;
  • scandalous or contrary to law; or 
  • likely to deceive or cause confusion.

Can I Adopt a Letter as a Trade Mark?

It is possible to adopt a letter as a trade mark for your business, but you will need to make sure that the mark is distinguishable from other businesses in your industry. A highly publicised rebrand can improve a trade mark’s distinguishment because of how widely known a new trade mark is associated with a business. This is the advantage that Twitter has.

If you want to adopt a letter as a trade mark for your business but are unsure about whether it is distinctive enough to be accepted by IP Australia, you could wait to use the trade mark in the marketplace for some time. Then, you can submit this evidence of use in response to a rejection by IP Australia and claim that your trade mark has acquired distinctiveness.

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Key Takeaways

Rebranding is a challenging process to navigate and is not something you should do on a whim. The Twitter to X rebrand is unique as a highly publicised event that offsets many of the typical challenges businesses encounter when attempting to rebrand. When rebranding it is essential to consider:

  • whether your existing trade marks align with your new brand;
  • trade mark availability and registrability; and
  • loss of your current brand’s reputation and goodwill.

If you are considering rebranding your business, our experienced intellectual property lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.

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Christopher Parker

Christopher Parker

Lawyer | View profile

Christopher is a Lawyer in LegalVision’s Intellectual Property Team. Before joining LegalVision, Christopher was a student volunteer at the Arts Law Centre of Australia and the Inner City Legal Centre. Since graduating from UNSW, Christopher has accumulated experience assisting legal departments such as the Australian Broadcasting Corporation’s Legal team and the Australian Copyright Council.

Qualifications: Bachelor of Laws, Bachelor of Arts, University of New South Wales.

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