Facebook announced its intention to rename Libra on December 1, with the company saying the new name would help the revamped project stand out from the intense regulatory setback Libra faced when it was announced last year.
Diem co-founder and prominent European fintech investor Chris Adelsbach told media outside Sifted that if he was intimidated by the prospect of engaging in a legal battle with Facebook, he had received legal advice asking him to protect his trademark:
“It wouldn’t have taken so much effort for Facebook to find out if there is another Diem in financial services […] They obviously felt that “we can just crush them, we are Facebook”. “
In a statement, Diem CEO Geri Cupi said his company was “flabbergasted” to learn that the Libra association intended to rebrand itself as “Diem,” adding:
“As a small startup, we are concerned that customer confusion resulting from Libra’s actions will have a significant impact on our growth.”
Diem executed its gradual launch in October and has since garnered half a million subscribers. The platform allows users to sell goods instantly online and offers debit cards, with Sifted describing the app as “a kind of digital pawnshop”.
Ripple recently faced a comparable lawsuit from the New Payments Platform Australia, or NPPA, which alleged intellectual property violations arising from Ripple’s use of the “PayID” mark to describe its payment standard. , while the NPPA operated the “Pay ID” payment network in Australia. since March 2017.
The case was resolved when Ripple registered a new trademark for “Paystring”.
Facebook’s stable ambitions also appear to be set for a legal showdown with global regulators.
At a December 7 conference between G7 ministers and central bank leaders, German Finance Minister Olaf Scholz described the project as “a wolf in sheep’s clothing.”
Scholz stressed that German lawmakers “will not accept its entry into the market” without Facebook demonstrating that it has addressed the government’s regulatory concerns, adding:
“We must do everything to ensure that the monetary monopoly remains in the hands of the states.”