The Dubai-based cryptocurrency firm Alibabacoin Foundation has asked a judge at the US District Court in Manhattan to dismiss the lawsuit filed by Chinese retailer trademark Alibaba (TIKER: BABA.NYSE), noting that the Chinese e-commerce giant cannot monopolize the “magical” Alibaba name, Reuters reports.
Earlier this month Alibaba filed a complaint against the Dubai-based firm also known as ABBC Foundation for using its trademarked name to raise more than $3.5 million in cryptocurrency.
It said Alibabacoin Foundation’s “prominent, repeated, and intentionally misleading” use of its trademarks is designed to confuse consumers.”
Alibabacoin rejects the claim that consumers would be confused into thinking Alibaba supported its alleged effort to raise money in the cryptocurrency market.
“The legend of Alibaba conjures up thoughts of magic, gold coins, and ‘Open Sesame,’” Alibabacoin said.
“The ABBC entities are well within their rights to use a word connoting magic and golden coins in an area (Alibaba) has not used or, at the very least, has abandoned.”
The firm said it has not been trying to piggyback off the Alibaba name, and that China’s ban on ICOs in September eliminated a key source of potential confusion.
Alibaba’s lawsuit seeks a halt to alleged further infringements, plus compensatory, punitive and triple damages for alleged violations of federal and New York law.
By Siranush Ghazanchyan