Just a week after Facebook rebranded Libra to Diem, the company could be facing a lawsuit from a London-based fintech startup with the same name.
Despite fears about the upcoming legal battle with Facebook, the platform held legal advice and still decided on the lawsuit.
“It wouldn’t take Facebook a lot to figure out if there’s another Diem in the financial services industry. They obviously were of the opinion that they could simply “crush” us, “said Adelsbach.
Diem CEO Jeri Kupi said his company was “stunned” to learn of Libra’s intention to rename itself Diem.
“Our small startup is concerned that customer confusion as a result of Libra’s actions will have a significant impact on our growth,” he added.
Diem is awaiting a response from Facebook in the form of a so-called termination and abstinence letter. The startup did not specify which legal entity it intends to sue: London-based Facebook or Diem Association from Geneva.
London-based startup Diem launched in October 2020 and has since attracted half a million subscribers. The platform allows users to instantly sell property online and issues debit cards.
As AtoZ Markets reported, the Libra Association, which develops the digital currency, changed its name to Diem Association. Diem is a Latin term for “day”.
The rebranding is associated with the organization’s desire to distance itself from the original model of a global stablecoin, presented in June 2019 and outraged by global regulators.
Later, German Finance Minister Olaf Scholz called the renamed Libra “a wolf in sheep’s clothing” and said the company would need “more than a rebranding” to allay regulatory concerns.
As a reminder, in May, Facebook rebranded renamed the Libra wallet from Calibra to Novi. This was done following complaints from fintech startup Current over the use of a similar logo.
this is what happens when you only have 1 crayon left pic.twitter.com/2JY5JfesQD— Current (@current) June 19, 2019
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