In response to Codi’s recent marketing campaign known as “WeWont,” WeWork has issued a cease and desist letter, as exclusively reported by TechCrunch. The letter, dated October 13 and viewed by TechCrunch, was sent by WeWork’s Chief Legal Officer, Pam Swidler. It cites multiple violations, including the unauthorized use and misappropriation of WeWork’s intellectual property, false advertising, and interference with WeWork’s contractual relationships with its member companies.
Codi, which recently raised $16 million in a funding round led by Andreessen Horowitz in September 2022, set up promotional booths outside WeWork offices in New York and San Francisco. They informed companies that WeWork spaces might be closing and offered them the option to join Codi instead. Additionally, Codi introduced a “WeWork Relief Fund,” which provided discounted office space with Codi to companies potentially affected by WeWork closures.
Despite WeWork’s legal actions, Codi remains resolute. Christelle Rohaut, CEO and co-founder of Codi, defended the campaign, stating, “There’s nothing unethical about what we’re doing. We view it as healthy competition. Our intention is to support founders and companies who have been impacted.”
WeWork, once valued at as much as $47 billion, has encountered challenges due to its business model, which involved committing to long-term leases in buildings without sufficient demand. The COVID-19 pandemic further exacerbated its woes, and the company has struggled to recover. WeWork expressed doubts about its ability to continue as a “going concern” in August.
As of the latest update, WeWork’s stock was trading at just $2.22, a significant drop from its 52-week high of $130.80 and its high of $520 in 2021. WeWork also reported a net loss of $397 million for the second quarter of the year, with revenue of $877 million.
WeWork announced the appointment of David Tolley as its new CEO, while competitors such as Codi and Industrious have emerged in an attempt to capture a portion of the co-working market that WeWork once dominated.
Unlike WeWork, San Francisco-based Codi does not classify itself as a co-working company but rather as an office-as-a-service startup. Codi helps companies find and manage fully private, ready-to-use office spaces through its managed marketplace. Rohaut noted that many of Codi’s clients transition from co-working spaces like WeWork as they seek to establish their own workspace and culture.
Codi initiated its “WeWon’t” campaign in response to inquiries from companies and founders affected by WeWork’s building closures, according to Rohaut.
WeWork’s cease and desist letter to Codi alleged that Codi, a provider of co-working space founded after WeWork, made unauthorized use of the WeWork brand and disseminated false and misleading information about WeWork. This was done to unlawfully solicit WeWork members, the letter claimed. WeWork accused Codi of infringing on its brand and engaging in misleading advertising by promising discounts to “the first 50 WeWork members moving into a Codi space.”
Furthermore, WeWork contended that Codi’s campaign contained false and misleading statements about WeWork’s offerings, including negative comments about WeWork’s accessibility to local communities. WeWork also challenged Codi’s claims about certain WeWork locations closing, asserting that Codi lacked the necessary permits to post signs and station staff outside its offices in New York City.
WeWork’s cease and desist letter requested that Codi “immediately and permanently cease all use of and references to the WeWork Brand in any form, format, or style, including the WeWork trademark and any similar terms like stylized versions of ‘WeWont.'”
