Square is no chip off this block

H&R Block doesn’t like the idea of Square renaming itself Block Inc. The tax-prep company filed a lawsuit against Block asserting that the payments company’s new name infringes upon the H&R Block family of trademarks. Square changed its corporate name to Block Inc., effective Dec. 10, 2021, although its official NYSE ticker symbol remains SQ. It also left in tact all of its various service offering names, like Square POS and Square Capital.

The trademark infringement complaint was filed in U.S. District Court for the Western District of Missouri. H&R Block, which is headquartered in Kansas City, Mo., announced the action on Dec. 16.

“The goodwill and brand identity that [H&R] Block has carefully cultivated and nurtured over the last 65 years is under attack by the Silicon Valley fintech company,” H&R Block said in its statement. The company noted that the new Block Inc. “competes directly with Block in several areas of financial services,” including tax preparation services.

Square's move into tax prep

Last year, Square purchased Credit Karma’s tax preparation business for $50 million and integrated that with its Square Cash App, under the Cash App Taxes moniker. Square had wanted to acquire Credit Karma in its entirety, but the U.S. Department of Justice blocked the deal, and Credit Karma was eventually sold to Intuit, which already had a strong position in the tax prep business through its TurboTax offering.

H&R Block said it has worked long and hard with franchisees and associates, including investments totaling “billions of dollars” in marketing, to earn and maintain “the trust and loyalty of millions of consumers,” and that Block Inc. is “taking a shortcut” to success by capitalizing on its well-known name. “Today’s filing is an important effort to prevent consumer confusion and ensure a competitor cannot leverage the reputation and trust we have built over more than six decades,” said Jeff Jones, H&R Block president and CEO. “Protecting and defending our brand is crucial.”

H&R Block stated it has been made aware of “several indications” that consumers already are drawing a link between the two companies “due to Block, Inc.’s choice to co-opt the Block name.”

The Green Sheet reached out to Block Inc. for a comment, but has received no response as of this posting.

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