Chinese E-commerce Giant Alibaba Wins Preliminary Injunction Against Alibabacoin

Chinese e-commerce giant Alibaba has won a preliminary injunction against Dubai-based Alibabacoin Foundation in a lawsuit over the misleading use of Alibaba in their name, financial website MarketWatch reports Wednesday, Oct. 24.

The U.S. District Court for the Southern District of New York has sided with the Chinese corporation during the trademark infringement case hearing Monday, Oct. 22.

Judge James Paul Oetken, as cited by MarketWatch, said that consumer confusion could occur due to the similarity of trademarks; therefore, the Alibabacoin Foundation should not use the confusing “Alibaba” part for its brand anywhere in the U.S.

According to the Wall Street Journal (WSJ), the court’s decision implies that the Alibabacoin Foundation will no longer be able to promote or sell its cryptocurrency in the country until larger action on this case is decided.

In April, Alibaba sued the Dubai-based Alibabacoin Foundation for copyright infringement after the latter’s Initial Coin Offering (ICO) raised $3.5 mln. The Chinese giant stated that the company Alibabacoin engaged in “prominent, repeated, and intentionally misleading” behavior by using a similar name.

In addition, Alibaba said that coin’s owners did nothing to combat or correct this confusion. The initial lawsuit was accompanied by a temporary restraining order against Alibabacoin.

In May, a U.S. court ruled against Alibaba’s request for an injunction, and Judge Oetken negated a restraining order on the Alibabacoin Foundation’s activity.

In early 2018, Alibaba was rumored to have plans to launch a cryptocurrency mining platform despite strict Chinese regulations. Later, the giant clarified the rumors, stating that its P2P platform had been mistakenly taken for a crypto startup. The company also added it has never issued virtual currencies and will not host any crypto mining platforms.

In mid-October, the Alibabacoin Foundation reportedly offered for Alibaba to purchase their startup.

According to the Alibabacoin Foundation’s website, the company wants to build a fund security system improved by a secret technique for implementing a blockchain algorithm into a facial recognition hashing process. According to CoinMarketcCap, Alibabacoin is ranked 1691th in global cryptocurrency rankings, and has seen a decline in price this week dropping from $1.6 per coin to $0.37 as of press time.

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Chamber of Digital Commerce Proposes Guidelines for ‘Responsible’ Crypto Market Growth

The Chamber of Digital Commerce Token Alliance has released a collaborative report of proposed guidelines for “responsible growth” of the cryptocurrency market, according to their July 30 press release.

The Chamber of Digital Commerce is a blockchain and cryptocurrency advocacy group, founded by Perianne Boring in 2014.

The document, entitled “Understanding Digital Tokens: Market Overviews & Guidelines for

Policymakers & Practitioners,” is broken up into three sections: a regulatory overview of digital token markets in five countries, principles for those distributing digital tokens that are not intended to be securities, and economic coverage of the “global token landscape.”

Paul Atkins, CEO of Patomak Global Partners and former U.S. Securities and Exchange Commission (SEC) Commissioner, said in the press release that guidelines are needed for the smart regulation that “strikes the right balance between protecting investors while allowing for innovation in this new technological frontier,”

“We think it is important to explain the unique attributes of blockchain-based digital assets, which are not all strictly investment based, and provide guidance to consumers, regulators and the industry.”

The Token Alliance is made up of more than 350 international members from the blockchain and token industries, as well as experts in topics from economics to law. The press release notes that the alliance’s guidelines will “likely evolve” as the regulatory environment develops, and encourages readers to comment on the report through GitHub.

The report concludes by noting that this is the first installment of a series for “opening the doors to creative thinking and understanding in the token ecosystem,” and suggests future topics ranging from KYC/AML guidelines to “hybrid tokens” — those that changed form to no longer be considered a security.

Internationally, groups and governments have come up with their own sets of guidelines for governing the cryptocurrency market. In April, a Japanese research group established guidelines for initial coin offering (ICO) regulation, and the Lithuanian government also released their own ICO guidelines in June.

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