Alibabacoin Foundation, a cryptocurrency company based in Dubai has refuted claims of trademark infringement brought against it by Chinese online retailer Alibaba Group Holding Ltd (NYSE:BABA). Alibaba Group Holding filed a lawsuit in US last week. A few hours after filing the lawsuit, Kimba Wood, a US District Judge issued a temporary restraining order and directed Alibabacoin to explain why it should be enjoined from additional alleged infringements. Alibabacoin has up to April 11 to respond.
In the lawsuit filed in the Manhattan US District Court, Alibaba noted that the accused’s repeated, prominent as well as intentionally misleading use of its trademarks was orchestrated to confuse customers into thinking that its products are endorsed or affiliated to the Chinese online retailer.
In response to the allegations, lawyers representing Alibabacoin Foundation said the company did not intend to infringe of the intellectual property of Alibaba and that the demand by the lawsuit that it closes business and restart with a new name was unreasonable or proportionate response to an entirely legitimate use of a generic word, which has its origin in China but applicable to all regions.
In the lawsuit, Alibaba has accused Alibabacoin of using its focus so as to capitalize on its reputation for success by using its trademarks in totality without any alterations in several instances.
Although Alibaba has on several occasions has announced that it has no plans of moving into the cryptocurrency industry, confusions surrounding its role has been rife in the media and has accused Alibabacoin for doing nothing to tame the confusion.
Alibaba was curved from Ali Baba, the name of the protagonist in the famous Middle Eastern folk tale titled “Ali Baba and the 40 Thieves”. Alibaba Group Holding is one of the largest and most successful e-commerce companies in the world.
In other news, Alibaba has announced that it is in the early stages of negotiations to invest in Grab. Grab is the leading ride-hailing app provider in Southeast Asia. According to media reports, the talks are just kicking off and the amount that Alibaba intends to invest in Grab is yet to be revealed.