The issue has come about because after twitter had been around for a while Twittad trademarked the word tweet. The company Twitter claimed in court that they were in the inventor and popularizer of the word long before Twittad had the opportunity to trademark the word. This argument did not work with the judge. So the dispute had to be solved out of court in order to appeal to both parties. After a long batte and who knows how much dough, Twitter now has the exclusive rights to the word 'Tweet'.
http://mashable.com/2011/10/10/twitter-tweet-trademark/

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