Dex hits hard times: Delays and Legal Troubles…
by Scott Annan on November 18th, 2008So the song goes “I don’t like Mondays”® (credit: Bob Geldof)….
After a weekend of development and code improvements, we were unable to get Dex through our internal tests to release it into beta - as planned for this week. We ran into several roadblocks, and we held a long team meeting to discuss the opportunity vs. risk of launching the product to our beta users without some of the key, mind-blowing features. In the end, we agreed that it was more important to get it done right than to get it done fast (this is me eating my words!). This means disappointing all of the people who signed up for our beta program (our most interested audience). And it also means a very disappointed and disheartened development team. When everyone’s pulling all-nighters and working through weekends to hit a date, and you realize that the product just isn’t where it needs to be, its a real blow to morale and enthusiasm.
So Monday morning and the decision is made to push back the launch of our Beta program (emails to everyone who signed up to follow shortly).
But Monday gets worse…
Later in the evening I receive an email from a lawyer representing Dex Media (not to be confused with MediaDex) - who run Dex Knows, an online yellow pages site. They believe that our use of the name dex “is likely to cause confusion and is an infringement of the DEX® mark”, and that we should change our product name immediately “before further and substantial damage results from [our] continued infringement of the DEX® mark”.
Apparently Dex Media feels that our relationship management product resembles their online yellow pages website and magazine publishing business enough that we risk causing confusion and could benefit from the goodwill they have accumulated with their customers.
Dex insurance: ok.
Dex skateboard: ok.
Dex software (software?): ok.
Dex supply chain logistics (software again?!?): ok.
Dex multimedia (media?): yup.
Medical equipment, clothing line, Imaging, Concrete work…
OK, so maybe we’re not so original, but I think its pretty unreasonable to say our product is anything like a yellow pages company.
So now we have a choice to make. Do we try to make our case ($$$) or do we throw away all of our goodwill and time invested in an unoriginal but strong brand position?
At the very least, at least Monday’s over.
November 19th, 2008 at 12:29 pm
I’ve heard that being a startup is mixed with times of incredible elation - and once in a while - absolute deflation. Don’t get discouraged; it probably doesn’t feel like it right now but one day these hurdles will seem like tiny speed bumps. Keep at it, we (beta testers) will wait…
November 19th, 2008 at 12:39 pm
Thanks Chris.
November 20th, 2008 at 3:42 pm
Hi Scott.
Dex is not your brand. It is just a moniker you stuck to your product, where it tries to embody the value of your offering. Nothing more. A brand is a moniker that has earned mind share from people who buy products and services under its name because that brand represents the excellent absolute value of the offering and the excellent value of the offering when compared to the competition. You guys are nowhere near that because you haven’t launched yet.
You guys are on the verge of creating a powerful new category of CRM-ish products, and I think you’ll build a strong brand with any reasonable moniker you stick on the product. Dex is one of many reasonably good possibilities.
i.e. Don’t worry.
In the interim, I’ll still be waiting for my beta testing account…
Cheers, Jay
P.S. Laura Ries has some good insights here on the topic…
http://ries.typepad.com/ries_blog/2007/06/consumers_dont_.html
http://ries.typepad.com/ries_blog/2008/11/its-the-category-stupid.html
http://ries.typepad.com/ries_blog/2008/10/dont-tinker-with-your-brand.html
http://ries.typepad.com/ries_blog/2008/05/great-product-terrible-brand.html
November 22nd, 2008 at 10:42 am
[...] week we received a cease and desist (C&D) letter from a lawyer representing a large company that felt we were using their trademarked name [...]
November 27th, 2008 at 12:02 pm
We will continue to follow you. Do not worry we are more persistent than you think.
The «Dex knows» site owner is pretty presumptuous. Difficult to confuse your product with them.
November 27th, 2008 at 11:13 pm
Well, now I’m worried that my new company is going to run into some trouble with its name… I’ve already launched and I haven’t done a lot of due diligence around the name (abetteroffice.com). I’m not sure if this is going to make me charge ahead and take the bull by the horns, or do nothing and hope I don’t get a cease and desist letter as well…