The giant social media continues to stir controversy even when it’s trying desperately to avoid it. Just a week after Facebook renamed Libra to Diem (meaning “day” in Latin), the company could be facing a lawsuit from a London-based fintech app with the same name.
- CryptoPotato reported last week that Facebook changed the name of its future cryptocurrency in another attempt to escape from all the regulatory hurdles in its way.
- However, it seems that the Association behind the project has chosen the wrong name (again). According to a recent report, a financial application with the same name Diem has threatened to sue Facebook and its partners for copying.
- Founder and CEO of the finance app, Geri Cupi, said in a statement that they were “flabbergasted” when news broke out that Facebook’s Libra Association had chosen the Diem name. “As a small startup, we are concerned that customer confusion resulting from Libra’s actions will significantly impact our growth,” Cupi added.
- The UK startup contemplated the idea of conceding and saying, “we’re a small company,” but the legal team strongly advised they need to take action to protect the brand.
“It wouldn’t have taken that much effort for Facebook to find out if there’s another Diem in financial services… They obviously took the view that ‘we can just crush them, we’re Facebook.’” – Cupi asserted.
- It’s worth noting that this is Facebook’s second similar situation. Shortly after announcing the initial Libra project last year, an Israeli insurance company called Libra sent a notice claiming that it owns all the rights to the “Libra” trademark.