The decision is out in the ongoing case between Alibaba Group Holdings Ltd v. Alibabacoin Foundation. The ruling has been against the Chinese conglomerate Alibaba Group by U.S. District Judge J. Paul Oetken. The U.S. District Court has ruled in favor of a Dubai-based cryptocurrency foundation, Alibabacoin. The judge said that the Alibaba Group did not show any jurisdiction in the U.S. and furthermore China’s ban on initial coin offerings eliminates any potential confusion.
He “rejected Alibaba Group Holdings Ltd’s bid for a preliminary injunction to block the Dubai cryptocurrency firm Alibabacoin Foundation from using the Alibaba name,” Reuters reported, adding that the judge explained, “Alibaba did not show he had jurisdiction, having failed to establish a ‘reasonable probability’ that Alibabacoin’s interactive websites were used to transact business with customers in New York.”
Alibaba Group accused Alibaba Coin of using an “unlawful scheme to misappropriate” Alibaba’s brand name “in order to deceive investors in the U.S. and around the world.” The complaint was filed on the 2nd of April with the U.S District Court of Southern District of New York.
The Alibabacoin Foundation argued that it was not trying to piggyback off the Alibaba name. Judge Oetken then dissolved a temporary restraining order against the foundation issued on April 2 by another judge.
This Is Not China
“The judge said it did not matter that Alibabacoin might eventually list its cryptocurrency on U.S. exchanges or that a New York company hosted one of its websites,” Reuters detailed, noting that, “Any injury Alibaba might have suffered to its business, goodwill and reputation from alleged trademark infringement likely occurred in China, where the e-commerce retailer is based.”
Furthermore, the judge explained that “China’s ban on initial coin offerings in September eliminated a key source of potential confusion among consumers about its lack of ties to Alibaba,” the news outlet conveyed.