A landmark ruling in the corridors of Cryptocurrency has been made at a U.S District Court. The court has made a ruling against Alibaba Group, a Chinese retail superpower in favor of Alibabacoin, a digital coin foundation based in Dubai.
According to the presiding judge, Alibaba Group didn’t demonstrate any kind of jurisdiction in both China’s and US ban on the Initial Coin Offerings.
A Blow to Alibaba Group
While presiding at a U.S District Court of Southern District of New York on Monday, 30th April 2018, Judge J. Paul Oetken made a landmark rule favoring a Dubai-based digital coin foundation against Alibaba Group Holdings; a Chinese retail giant. The judge had earlier thrown away a bid that was made by Alibaba Group Holding Ltd.’s for a preliminary injunction to block the usage of the name Alibabacoin Foundation by a Dubai-based Cryptocurrency agency.
According to the judge, Alibaba failed to prove that he had jurisdiction after he failed to prove a potential probability that the interactive sites for Alibabacoin’s were used for trading with customers in New York City, the U.S.
Unlawful Plan to Misuse a Brand’s Name
While the ruling was delivered towards the end of April, the last day of May to be precise, the complaint was filed on the 2nd of April 2018. Alibaba had earlier accused the Dubai-based agency of applying an illegal plan to misappropriate its brand name, Alibaba.
The Chinese conglomerate went ahead to state that the defendants did that to deceive various capitalists from the United States and other parts of the globe. The other allegations that were tabled by this Chinese retail body are that the defendants had applied its trademark to raise more than $3.5 million in an Initial Coin Offering campaign. It also alleged that the ICOs for Abbc Coins or Alibabacoins, whose transactions are not only registered but also not approved in the United States.
This is The U.S, Not China
According to the document presented to the court, Alibaba Group Holding is a Cayman Islands firm and its main place of business is Hangzhou, China. While its main offices are in Dubai, Alibaba Foundation also referred to as Abbc Foundation has other offices in Minsk, Belarus.
The judge further explained that it does not really matter whether Alibaba might think of having its services listed with a US crypto exchange or its main site is hosted by a New York-based company. Judge J. Paul Oetken stated further that any kind of injury that the Chinese firm might have sustained to its reputation, goodwill and business from the alleged infringement of trademark definitely took place in China. This is where the super online retailer has its head offices.
Mr. Oetken explained that the ban imposed by China’s government on the ICOs in September 2017 took away one of the most important sources of potential confusion among the users regarding its zero connections to Alibaba.
Alibaba Foundation, on its part, said that it wasn’t attempting to piggyback off the title used by this Chinese e-commerce company.