- Jul 29, 2021
Knocking horns with its similarly named virtual currency Alibabacoin, China-based e-commerce giant Alibaba won a preliminary trademark infringement case in a New York federal court against Dubai-based cryptocurrency firm Alibabacoin Foundation, barring it from using the name ‘Alibaba’, or likeness; obtaining a preliminary injunction against the foundation—which sells a cryptocurrency using that name.
This means Alibabacoin Foundation can no longer promote and sell its cryptocurrency using the name ‘Alibaba’ in the U.S. at least until Alibaba’s larger court action on the trademark infringement case is decided.
As Alibaba states, “with the benefit of evidence obtained through discovery” they believe that the cryptocurrency firm has published further promotional material that uses its trademarks to align itself with the Chinese conglomerate, which helped in its attempt to raise $3.5 million.
The case’s outcome suggests it’s not just U.S. companies that could benefit from better IP protection. The cryptocurrency, AlibabaCoin or ABBC has a market value of $1.9 million and is trading at 71 cents, according to data. The coin had reached an all-time high of $1.63 on Oct. 18, 2018. Meanwhile, Alibaba boasts a market value of more than $330 billion.
The lawsuit listed a number of defendants including ABBC Block Chain IT Solutions LLC; Alibabacoin General Trading FZE; Alibabacoin Foundation LLC and Jason Daniel Paul Philip and Hasan Abbas, the founders of the company.
Alibabacoin Foundation’s blockchain technology will use artificial intelligence techniques which are effective for image recognition and most reliable in identifying a person as accurately as possible. Moreover, this technique will also come in handy for payment of electronic wallets and for financial transactions as well.
As per data from CoinMarketCap, the cryptocurrency AlibabaCoin or ABBC holds a market value of $1.9 million and is trading at 71 cents, reaching a record-high $1.63 on October 18, 2018, which can now, in hindsight, be attributed to infringing on the trademark of the firm and reaping the commercial benefits out of it. On the other hand, Alibaba holds a gigantic market value of more than $330 billion.
When probed for comment, the attorneys representing both Alibaba and the cryptocurrency AlibabaCoin did not respond immediately, and their statements on the now popular trademark infringement case between the two sides are yet to reach the public ear.