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Then why not 'INSL'?
Same argument can be used for all recursive acronyms. Both GNU and Linux for example could have anything as first letter.
Linux is a recursive acronym?
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It's not a copyright issue, it's a trademark issue. Anything resembling the trademark can be considered an infringement, and it's up to a judge to decide what is.
Then it must be really completely different. Something like "ChameleonOS" would also infringe the trademark since that animal as logo for an OS is also protected?