WeWork, the coworking giant, has responded strongly to rival company Codi’s recent marketing campaign called “WeWont.” In a cease and desist letter sent to Codi, WeWork’s Chief Legal Officer Pam Swidler cited unauthorized use of intellectual property, false advertising, and tortious interference. Codi had set up booths outside WeWork offices in New York and San Francisco, offering companies the option to sign on with them if their WeWork space were to shut down. Codi also launched a “WeWork Relief Fund” offering discounted office space to those potentially affected by WeWork closures.
Key Takeaway
WeWork has responded to Codi’s “WeWont” campaign with a cease and desist letter, accusing Codi of unauthorized use of intellectual property and false advertising. WeWork’s legal action highlights the challenges faced by the coworking giant and the increasing competition in the market.
Codi Remains Unfazed
Despite the legal action taken by WeWork, Codi CEO and co-founder Christelle Rohaut maintains that their campaign is fair competition. Rohaut stated in an interview that Codi is providing support to founders and companies impacted by WeWork’s challenges. Codi, which raised $16 million in funding in September 2022, considers itself an office-as-a-service startup rather than a coworking company. It helps businesses find and manage fully private and turnkey office spaces through a managed marketplace.
WeWork’s Struggles and Competitors’ Rise
WeWork has faced numerous challenges in recent times due to its business model, which involved signing long-term leases without sufficient demand for its spaces. The COVID-19 pandemic dealt a severe blow to the company’s coworking business, and WeWork has been struggling to recover ever since. The company’s stock has plummeted, and in August, WeWork announced a net loss of $397 million in the second quarter of the year. Competitors like Codi and Industrious have emerged, aiming to capture a share of the shrinking market.
Accusations and Legal Action
In its cease and desist letter to Codi, WeWork accused the company of unauthorized use of the WeWork brand and making false and misleading statements about WeWork and its offerings. WeWork alleged that Codi’s campaign includes disparaging language about WeWork offices and false claims about WeWork locations closing. The letter demanded that Codi immediately remove all references to the WeWork brand.
