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Stamford is also the name of a place, but that doesn't mean you're not causing problems when you call your school "Stamford University". (I'm aware that the name is much older, but it's been displaced.)

And in this case, Molokai isn't the name of a place, it's been chosen solely for its phonetic similarity to "Monokai".

If I found a new Harverd University, I may be able to justify that, but I certainly can't do so on the stated grounds of "in order to avoid confusion".



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