A U.S. District Judge said that the likely damage Alibaba suffered might have occurred in China where the company is based. Alibabacoin said they did not intend to take advantage of the Alibaba name. The ruling means Alibabacoin can still use the name.
Alibabacoin name for Dubai cryptocurrency Foundation
A judge in U.S. rejected an application by the Alibaba Group Holdings Ltd to block a Dubai cryptocurrency firm from using the name Alibabacoin for their foundation. U.S. District Judge Paul Oetken in a Manhattan court said Alibaba did not prove that he had jurisdiction. Moreover, it did not establish a “reasonable probability” that Alibabacoin used its websites to transact with customers in New York.
The ruling follows claim by Alibaba, the online marketplace, that Alibabacoin hurt its business in the United States and was causing confusion among customers by using the name.
The Chinese company said the move was in violation of the federal and state laws. Alibaba sought to have Alibabacoin change the coin’s name. The Chinese company was also seeking damages for the initial coin offering they termed as “prominent, repeated and intentionally misleading”.
The ruling is a relief for the cryptocurrency firm, which received temporary orders on April 2 against the use of the name, from another judge.
The company, also known as ABBC Foundation, said they were not trying to take advantage of the Alibaba name. The company argued that the ban on ICOs by China eliminated a key source of potential confusion among consumers regarding ties to Alibaba.
The judge further said that it did not matter that the cryptocurrency might list on U.S. exchanges or that one of its websites was hosted by a New York-based company. The judge said any injuries to Alibaba’s business, goodwill and reputation as a result of infringement of trademark, likely took place in China where the company is based.
In addition, Alibaba deserved another chance to prove why the case belonged to Manhattan. the judge added.
What do you think of the two names? Will they cause confusion?