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Whether the name is pronounced “SIG-a-lit”, “sih-GAH-lit” or even “sig-a-LIT”, it still sounds like “cigar lit”. Just in different accents. However, in my opinion, that wouldn’t be a reason not to use it. That association isn’t particularly negative. It’s not scatalogical or sexual, it’s just a weird linguistic coincidence.

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I wouldn’t use it because the combination of sounds isn’t particularly attractive to my ear, but there’s nothing wrong with it.