The Chinese company Alibaba Group filed a lawsuit in the US court against the Dubai fund Alibaba Foundation for “vivid, repeated and deliberate” misleading the public with the help of a trademark that does not belong to it. According to Reuters, Alibaba initiated a hearing in the District Court of Manhattan.
The Alibabacoin Foundation issued a digital currency with the same name and distributed it with the help of the ICO, as a result of which it managed to raise more than $3.5 million.
After the filing of the claim, Judge Kimba Wood issued a temporary injunction and established April 11 the date to which Alibabacoin representatives should explain why they should be allowed to use this name with impunity. The purpose of the claim is to prevent further violations and recover compensation from Alibabacoin for alleged violations of the laws of the United States and New York.
Alibaba accuses Alibabacoin of “unambiguously striving to capitalize the plaintiff’s reputation for achieving its own success,” using his trademarks “innumerable times and without change” to attract capital through the sale of digital currency.
Earlier, Alibaba said that it was not interested in starting to deal with cryptocurrencies. However, sales of Alibabacoin led to a wave of rumors that quickly spread through the online space and with the help of the media. The suit also states that the Dubai company “has not taken any action to correct this misunderstanding.”
Reuters did not manage to get comments from representatives of Alibabacoin, and the law firm representing the interests of the company left the courtroom without giving the news agency any comments.
On March 26, representatives of Alibabacoin told Finance Magnates that they do not have “ties, subordinate relations, agreements, partnerships or any other contact with Alibaba.com”. According to them, Alibabacoin was officially recognized in Dubai and Belarus. In addition, they deny any claims that the fund is a fraudulent enterprise that wants to earn on behalf of Alibaba.