How is Xorg a “direct competitor” to Microsoft? Especially Microsoft’s trademark to X in the gaming market where they own the Xbox and Xorg doesn’t participate at all?
Trademarks protect consumers by preventing fraud and misleading naming. It makes perfect sense that Microsoft owns X in the given market space due to the enormous prevalence of Xbox. Their first console was literally X-shaped and it would be bad for consumers for anyone to be able to make the “X-station” or “X-cube” or some such.