Facebook’s Diem Cryptocurrency is Threatened with a Lawsuit

Seems like Facebook is waiting for another lawsuit. This time (and again) the new name of a project - Diem - is a reason that serves for a possible future trial. 

Wrong name

One of the world's leading social media is trying to avoid any disputes but is causing them again and again. The company rebranded Libra to Diem (meaning “day” in Latin), but just a week later the London-based firm with the same name announced a possible lawsuit.

Unluckily the Facebook team has chosen not the right name for the project this time too. The fintech application from London named Diem has threatened Facebook and its partners for copying.

Geri Cupi, founder and CEO of the London-based app admitted they were “flabbergasted” following the news Facebook’s Libra Association renamed their project to the Diem Association.

“As a small startup, we are concerned that customer confusion resulting from Libra’s actions will significantly impact our growth,” said Cupi.

At first, the startup from the UK thought about giving in and saying, “we’re a small company,” but the team of lawyers insisted they had to protect the name of 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.’” claimed Cupi.

The Diem app from the UK offers its customers to sell their possessions instantly, unlike eBay, where they have to wait for bidders. The app serves as a kind of digital pawnbroker. The company also gives its users their own DIEM debit cards and accounts, calling themselves ‘Bank of Things.’

The company started a soft launch just a few months ago and already has about half a million followers on Instagram.

How far the fight goes

It’s not the first time when Facebook had a name controversy. In 2019, just after launching the initial Libra project, an insurance firm from Israel with the same name claimed that it holds all the rights to the “Libra” trademark.

In addition to brand name troubles, Facebook’s cryptocurrency project is now going through delays in issuing the coin as its waiting for approval from the Swiss market authorities.

Anyway, the fight between the companies will depend on resources, and whether Facebook is going to suggest an adjustment.