A U.S District has stated its verdict in favoring the Dubai-based cryptocurrency that goes by the name, Alibabacoin over the Chinese Giant, Alibaba Group. Alibaba, who was against the use of his name for a cryptocurrency feared that the Alibabacoin was gaining popularity because of false impression. However, Judge J.Paul Oetken concluded that potential confusion between the two is less likely, better yet, not possible to occur.
The Alibaba Group Holdings Ltd was keen on preventing the Dubai cryptocurrency firm, who is responsible for the creation of the Alibabacoin, from using the Alibaba name. They believed that their defendants choice for name was simply to deceive investors into thinking that the Alibaba Group is tied to the project.
Also, they believe that Alibabacoin’s tremendous collection of over $3.5 Million from investors during the Initial Coin Offerings (ICO) was only possible due the name, which was earned by the Chinese Giant.
However, Judge Oetken, rejected their standing, as he believed that, quote on quote, “Alibaba failed to establish a reasonable probability that Alibabacoin’s interactive websites were used to transact business with customers in New York.”
In addition to the lack of evidence on behalf of the Alibaba Group Holdings Ltd, the fact that both parties operate in different countries, one is China and the other in Dubai, allowed Judge Oetken to strongly conclude that Alibaba’s business and the Alibabacoin are not likely to run into each other.
He further went on to argue that China’s ban on ICOs are more likely to create a difference among the two parties involved, in the eyes of the people.