A US judge has rejected a bid for a preliminary injunction to block Alibabacoin, a Dubai-based cryptocurrency firm, from using its name.
Judge Paul Oetken of the United States district court for the southern district of New York on Sunday that Chinese e-commerce company, Alibaba, failed to show that a New York court had jurisdiction in the matter, as well as to establish a “reasonable probability” that Alibabacoin’s websites were used to conduct business with customers in New York, according to a report by Arabian Business.
The Judge added that whether or not Alibabacoin may eventually list its cryptocurrency on American exchanges, or that one of its websites was hosted by a New York-based company, is irrelevant.
Futhermore it was decided that any damage caused to China-based Alibaba’s business or reputation from the alleged trademark infringement is likely to have occurred in China.
Alibaba’s lawyers had originally filed a motion to force Alibabacoin to change the coin’s name as well as pursue damages for an initial coin offering it terms as “prominent, repeated and intentionally misleading”, the Arabian Business report said.
Lawyers representing Alibabacoin rejected the charges, arguing that at the time that the lawsuit “neither a reasonable or proportionate response to our client’s entirely legitimate use of an inherently generic word which emanates not from China, but indeed from the very region in respect of which your client would seek to prohibit its use.” The company further asserted that China’s ban on ICOs in September eliminated a potential source of consumer confusion regarding ties to Alibaba.