NanoLabs, the company that created the virtual currency Nano (NANO), has sued cryptocurrency exchange Coinbase for trademark infringement. The lawsuit, filed in the United States District Court for the Northern District of California, claims that Coinbase’s Nano Bitcoin futures contract and Nano Ether futures contract products violate NanoLabs’ trademark rights.
NanoLabs alleges that the infringement has harmed the company’s financial performance and brand recognition, resulting in actual damages and irreparable loss.
The Nano digital currency was first created in 2014 by Colin LeMahieu. Its name was changed from RaiBlocks to Nano on January 31, 2018. Coinbase introduced its Nano-branded products years later, including the Nano Bitcoin futures contract in June 2022 and the Nano Ether futures contract in August of the same year.
NanoLabs claims that these Coinbase products are derivative products based on Bitcoin and are either identical to or strikingly similar to Nano’s digital currency.
NanoLabs argues that the trademarks used by Coinbase for its products are indistinguishable from and may cause confusion with those of NanoLabs. Additionally, both companies appear to target customers interested in investing in and using digital currencies.
NanoLabs cites correspondence between the two firms in 2018 as evidence that Coinbase had prior knowledge of the Nano digital currency before launching its products. As part of this correspondence, Coinbase reportedly declined NanoLab’s application to have Nano listed on its exchange.
According to the filing:
“Thus, since at least October 17, 2018, various department heads and directors, as well as associates, in various departments at Coinbase were familiar with the Nano Digital Currency.”
The filing also claimed that the defendants did not inform users about the exclusion of Nano digital currency from the Coinbase Exchange through any warnings, distinctions, or other means.
NanoLabs is seeking an injunction against Coinbase to prevent them from using the term “Nano” and any related trademarks and domain names. Additionally, NanoLabs is requesting at least $5 million in damages from Coinbase, remedial advertising, and the removal of all materials that infringe upon the Nano trademark. NanoLabs is also requesting that Coinbase forfeit any profits generated through the exploitation of the Nano trademarks.
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