Last week on February 24th, NanoLabs — the company behind the digital currency Nano (NANO), alleged the crypto exchange Coinbase over alleged trademark infringement.
In the California Northern District Court, NanoLabs alleged Coinbase’s Nano Bitcoin futures contract and Nano Ether futures contract products infringe on trademark rights owned by them.
The company further said the infringement has caused NanoLabs economic detriment and weakened its brand identity. Due to which the company got in “actual damage and irreparable harm.”
Know more about Nano Digital Currency
The Nano Digital Currency was founded by Mr. Colin LeMahieu in 2014 as a decentralized, sustainable, and secure digital currency. The currency was focused on addressing the inefficiencies present in existing financial systems, namely high transaction fees and latency.
The Digital Currency was originally named RaiBlocks, and was then rebranded to Nano in early 2018. Since at least as early as January 31, 2018, NanoLabs has used the trademark Nano in United State commerce in connection with its digital currency, and the Nano Digital Currency has been marketed continuously in commerce throughout the country.
On February 2nd, 2018 the Nano Digital Currency had a market capitalization of more than $2 billion. While it is currently one of the top 200 digital currencies tracked by Coinmarketcap.
NanoLabs has expended significant resources in marketing its digital currency, and the Nano Digital Currency has been the subject of numerous third party media and press publications since its rebranding on January 31st, 2018.
What is the complaint of NanoLabs?
Earlier in last year, Coinbase launched its Nano-branded offerings. Then introduced the Nano Bitcoin futures contract last June and the Nano Ether futures contract last August.
And the complaint by NanoLabs stated that the offerings launched by Coinbase are “derivative products” based on Bitcoin (BTC) and Ether (ETH), which “are identical or highly similar” to its digital currency, Nano.
In the complaint it was also argued that “the crypto exchange aims the same kind of consumers as NanoLabs, being those seeking to invest in, and utilize, a digital currency,” and that the trademarks for Coinbase’s products “are identical, and […] confusingly similar,” to NanoLabs.”
The company further argued that the crypto exchange should “have known that offering Nano Bitcoin on the Coinbase Derivates Exchange would only further consumer confusion.”
As mentioned in the court documents “Particularly because the Nano Digital Currency is not listed on the Coinbase Exchange, and Defendants’ provide no disclaimer, distinction, or otherwise to educate consumers to this point.”
After filing the complaint, NanoLabs asked the Court for an injunction against Coinbase to stop them from using the word “Nano” and all associated trademarks and domain names of a similar nature.
Meanwhile, NanoLabs is also seeking around $5 Million in damages, corrective advertising from the crypto exchange, destruction of all materials infringing on the Nano trademark, and forfeiture of all profits Coinbase made using Nano trademarks. It has requested a jury trial.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/01/nanolabs-filed-complaint-against-crypto-exchange-coinbase/