- The heated court battle between the ABBC foundation and Alibaba Group has come to an end
- Court ruled in favor of Alibaba Group since one of its startup investors is from New York
ABBC foundation has finally dropped the Alibaba name after a lengthy court battle with the Chinese e-commerce company that shares the name.
The Magic Name, Alibaba
The Alibabacoin foundation stated that they were not after benefiting from Jack Ma’s Alibaba trademark but rather drew their inspiration from Ali Baba, a fictional character in Arabia. Allegedly the coin raised $3.5 million in its initial coin offering after using the trade name. The two companies have reached a settlement, where ABBC will no longer use trademarks that incorporate the name Alibaba. They also went ahead and apologized for any confusion they may have caused. The official name for Alibaba coin has thus been changed to the ABBC coin.
The Court Battle
Alibaba filed the complaint in April 2018 highlighting the confusion that was likely to result from sharing a name which would possibly damage its brand and end up losing its large target market in the US. The court battle was set in the New York southern district court where the judge stated that confusion would only occur in China where the company is based. The ABBC group was quick to point out that even in China such confusion would not happen because of last year’s ban on ICOs in the country.
From there onwards it has been a tug of war as each group tried to get the upper hand with rulings and court orders being overturned. Finally, they were able to show the court that one of its startup investors was from New York and that’s when the court ruled on their favor – ABBC was banned from using any of Alibaba’s trademarks.
The Brand Name Effect
The price of the ABBC coin fell sharply after the announcement, with about 50% value drop in a short time. ABBC coin now holds position 33 in the CoinMarketCap with a price of $0.39 USD.
Alibaba group has been very much interested in blockchain technology, holding about 10% of the blockchain patents in the world. Several other giant companies have shown interest in blockchain investment such as Amazon. These corporations’ involvement with blockchain technology is a great way to push cryptocurrency towards early global adoption.