Bitcoin Magazine is continuing to sell its "FedNow" merchandise line, in spite of a cease-and-desist letter from the U.S. Federal Reserve. The merchandise, which includes items such as t-shirts and hats, features the “FedNow” logo with the “O” replaced by an image of an eye, a critique of the Federal Reserve's alleged financial surveillance state.
The central bank claims this could mislead people into associating Bitcoin Magazine with them, alleging trademark violations. The "FedNow" logo is associated with the Federal Reserve's interbank payment system that was launched in July to replace the traditional Automated Clearing House (ACH) system.
In response to the cease-and-desist letter, Bitcoin Magazine’s legal team has issued an open letter invoking its First Amendment rights. They argue that their merchandise is parodic and meant for political criticism of the Federal Reserve. The design inspiration includes references to the "all-seeing eye" symbol from Jacopo Pontormo’s 1525 painting and U.S. 1-dollar bill.
The Federal Reserve needs to prove that Bitcoin Magazine's use of the mark is likely to intentionally cause confusion or deceive consumers—a claim the publication denies. The legal battle hinges on distinguishing between parody as protected speech under the First Amendment and actionable trademark infringement.
Bitcoin Magazine has labeled FedNow as a "scam" and a tool for government control in their open letter to the Federal Reserve. Presidential candidates Ron Desantis and Robert Kennedy, Jr. have also criticized FedNow, claiming it's a precursor to a central bank digital currency (CBDC) that could violate privacy rights, while also criticizing the FedNow DLT-powered payments system. The Federal Reserve denies any connection between its service and a CBDC.
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