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Jack Dorsey's Block Inc., formerly known as Square, has been slapped with a trademark infringement lawsuit from H&R Block following its recent name change announcement.
SQUARE CHANGES NAME TO BLOCK, DAYS AFTER CEO JACK DORSEY LEAVES TWITTER
The tax preparer argues the fintech startup's name change will "improperly capitalize on the goodwill and consumer trust" that has been cultivated since 1955.
"Through many decades of hard work by its franchisees and associates, and billions of dollars invested in marketing, Block has built a valuable brand that has earned and maintained the trust and loyalty of millions of consumers," H&R Block said in a news release. "Rather than generating its own brand equity, Block, Inc. appears to be taking a shortcut to capitalize on the well-known Block moniker. This is a clear violation of Block’s trademark rights, which threatens to confuse consumers and cause harm."
Store window advertising mortgage services is seen in downtown Boston, Mass., Wednesday, March 22, 2006. (Jb Reed/Bloomberg via Getty Images / Getty Images)
H&R Block emphasizes that Block Inc is a direct competitor in several areas of financial services, including through its acquisition of Credit Karma Tax, also known as Cash App Taxes, in November 2020.
"In the two weeks since the name change was announced, there already have been numerous indications that consumers are drawing a link between the companies due to Block, Inc.’s choice to co-opt the Block name," the company added.
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Dorsey, who recently stepped aside from his role as Twitter's chief executive after splitting his time between the two companies, said the change to Block Inc. would allow the company to distinguish its corporate entity from its businesses, noting that Square has become synonymous with its seller business.
"Block is a new name, but our purpose of economic empowerment remains the same," Dorsey added. "No matter how we grow or change, we will continue to build tools to help increase access to the economy."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HRB | H&R BLOCK INC. | 60.35 | +0.27 | +0.45% |
| SQ | BLOCK INC. | 90.79 | +6.49 | +7.70% |
Square, Cash App, TIDAL and TBD54566975 will continue to maintain their respective brand names, while Square Crypto will be renamed to Spiral.
A Block Inc. representative did not return FOX Business' request for comment on H&R Block's lawsuit.