Alibaba filed a trademark lawsuit against Dubai-based firm ‘Alibabacoin’ because the company used its name to raise $3.5 million in an ICO on Monday, according to Reuters.
In the lawsuit document sent to the U.S. District Court in Manhattan, e-commerce giant Alibaba explains that the Dubai firm used the Chinese online retailer’s name, which created confusion for investors to know if Alibaba was behind the ‘Alibabacoin’ or not.
“Alibaba accused Alibabacoin of using its ‘single-minded focus to capitalize on plaintiff’s reputation for success’ by using its trademarks ‘without alteration, in countless instances’ to sell cryptoassets,” Reuters stated.
The U.S. District Judge Kimba Wood restrained the Dubai firm temporarily and requires the company to explain on April 11 why it shouldn’t have any other additional consequences.
Further more, Alibaba claims that many news outlets have promoted the Foundation ‘Alibabacoin’ by linking it to Alibaba falsely.
However, in a press release on March 26th by the Dubai firm, the foundation claimed that Alibaba wasn’t endorsing the ‘Alibabacoin’ because of false media reports circulating about the possibility of Alibaba’s endorsement of the cryptocurrency project.
“We are a separate entity, and we are currently working as a blockchain-specialized business promoter. […] We hope that the world does not mistake the issue anymore.”
Alibaba’s lawyers, in a written statement, explained,
“Rather than build independent value in their brand and the products and services they offer, Defendants have engaged in a willful and concerted campaign to cause the public to believe falsely that Alibaba is the source of the Defendants’ products and services, or that such products and services are endorsed or sponsored by, or otherwise associated or affiliated with, Alibaba.”
Even if Alibaba said that it doesn’t want to be involved in cryptocurrency, in the beginning of March, the e-commerce giant announced that it was adopting blockchain for cross-border supply chains.