H&R Block Gets Injunction Against Company from Using the Name Block for Tax Prep

A federal judge has ruled in favor of H&R Block by ordering a competitor to stop using certain names and images.

Late last year, the Kansas City-based tax giant sued Twitter founder Jack Dorsey’s company Square Inc., which changed its name to Block Inc. Leaders at H&R Block said that move co-opted their brand name, confused consumers and infringed on the company’s trademark protections.

This week, U.S. District Judge Nanette Laughrey granted H&R Block’s request for a preliminary injunction against the California tech company. Her order bars Dorsey’s firm from using ” Block, Inc.,” “Block,” or other close variants like “Blocks,” in its tax preparation app.

The judge ruled that Block Inc.’s name and green images that resemble H&R Block’s logo could confuse consumers.

“H&R Block has been using the ‘Block’ and green square families of marks for decades,” Laughrey wrote, “and over that time, has carefully nurtured a reputation for high-quality service and reliability with respect to consumers’ most sensitive financial information.”

In changing its parent company name, Block Inc. retained the Square name for its company that provides point of sale systems to retailers across the country. The company also includes the Cash App brand and the music streaming service TIDAL.

The injunction bars the California company from publicly communicating through advertising, press releases or social media that it is associated with Cash App Taxes or other brands associated with taxes or tax services. The order required H&R Block to post a $250,000 bond and will remain in effect until the litigation is resolved.

Block Inc. has argued that “no reasonable consumer could possibly confuse” “H&R Block” with its “Cash App”or “Cash App Taxes” brands. H&R Block claims that the Cash App’s rounded green square logo could confuse consumers because of its similarity to the tax giant’s own green square logo.

The California company on Friday asked the court for a temporary stay on the injunction. Block Inc. asked the judge to hold off on imposing the injunction as both parties are set to begin court-mandated mediation on May 10.

“We are pleased that the Court has recognized the strength of our Block brand and our family of Block trademark rights,” H&R Block said in a statement. “Today’s ruling is an important victory in the effort to prevent a competitor from unfairly leveraging the reputation and trust H&R Block has earned over the past 65-plus years.”

Officials with Block Inc. could not immediately be reached for comment.

This story was originally published April 29, 2022 2:23 PM.

___

Visit The Kansas City Star (Kansas City, Mo.) at www.kansascity.com

Distributed by Tribune Content Agency, LLC.