To say that the development of Facebook’s stablecoins project is taking place in pain is an understatement. Libra renamed itself Diem, but a financial company of the same name has already made it known that it wants to take legal action to defend its brand name …
Diem already exists, and it’s not Libra
Libra announced its name change to „Diem “ a week ago. It was for the project to mark a distance with Facebook . The „Zuckerberg Coin“ has indeed floundered since the announcement of its launch, and its release has been repeatedly postponed, in the face of regulators who have shown particularly strong hostility.
But this “rebranding” already comes up against a pitfall that could lead to a lawsuit for the “Diem Association” . There is indeed already a financial application by the name of Diem, and she does not intend to let it go, as she explained in a statement .
The CEO of Diem expressed his surprise:
“We were stunned to learn that Facebook’s Libra Foundation had chosen to change its name to Diem. We are currently considering our legal options . “
An upcoming legal battle?
Chris Adelsbach, one of the investors who backed the launch of European startup Diem, told Sifted media outlet that it was probably not an oversight on the part of Facebook and Libra:
“It wouldn’t have taken a lot of effort for Facebook to realize that there is another Diem in the financial services industry. They obviously took the side of saying “ We can just crush them , we are Facebook.” “
It will also be recalled that this is not the first pitfall of this type facing the stablecoin project. He had already been accused of having „borrowed“ the design of his logo in October 2019, and had to change it.
The original Diem company will therefore send Facebook or the Diem Association a letter of formal notice . The follow-up to this case will depend on the response of the social media giant …