Jack Dorsey certainly kept himself busy in the couple of days since he quit as Twitter CEO for the second time. In those 48 hours, presumably during a meditative trance in some scenic part of Africa, he decided that the other business he runs, Square, needed a new name. This new name was to be Block, and it is in fairness arguably less stupid than Facebook’s decision to call itself “Meta” or Google’s to go with “Alphabet.”
The name has many associated meanings for the company — building blocks, neighborhood blocks and their local businesses, communities coming together at block parties full of music, a blockchain, a section of code, and obstacles to overcome.
Yea, all of that and also a block is a three-dimensional square. It’s also, for all of those warm and fuzzy associations, the name of an already-existing company in the financial services space.
[H&R Block] said in a press release Thursday that CEO Jack Dorsey's company "appears to be taking a shortcut to capitalize on the well-known Block moniker." H&R Block alleged that the change is a "clear violation of Block's trademark rights" that might cause consumer confusion…. H&R Block claims that there has already been "numerous indications" that people are confusing the two companies since Block announced the rebranding about two weeks ago. The tax preparation company also noted that Block competes with H&R Block after buying Credit Karma Tax.
For more of the latest in litigation, regulation, deals and financial services trends, sign up for Finance Docket, a partnership between Breaking Media publications Above the Law and Dealbreaker.