NanoLabs Sues Crypto Exchange Coinbase for Trademark Infringement
On Friday, February 24, 2023, NanoLabs filed a lawsuit in the United States District Court for the Northern District of California against crypto exchange Coinbase over the alleged infringement of its trademarks.
NanoLabs is the company behind the cryptocurrency Nano (NANO), which is used globally for an instant, secure feeless payments. The Nano cryptocurrency was launched in October 2015 by Colin LeMahieu to address the Bitcoin scalability problem and was created with the intention to reduce confirmation times and fees. On January 31, 2018, it changed its name from RaiBlocks to Nano.
Founded in 2012, Coinbase operates the largest cryptocurrency exchange in the United States by trading volume. Last year, the company launched two crypto derivatives products – Nano Bitcoin and Nano Ether – on its derivatives exchange platform. The products allow investors to buy contracts tied to the future value of one-hundredth of a bitcoin or ether.
The lawsuit alleged that Coinbase’s Nano Bitcoin and Nano Ether futures contract products infringe on trademark rights owned by NanoLabs. According to NanoLabs, Coinbase’s offering of digital currencies so similar to, and under an identical mark, harmed its finances and diminished its brand reputation.
“Defendants are not in any way affiliated with Plaintiff, have used the Nano Marks without authorization, without Plaintiff’s consent, and have therefore interfered with Plaintiff’s prospective economic advantage as a result of its dealings with retail brokers, clearing firms, as well as digital currency exchanges, while infringing Plaintiff’s rights,” the lawsuit said. “Defendants’ continued use of the Nano Marks and branding efforts related to Nano Bitcoin and Nano Ether will confuse consumers. Defendants’ continued efforts to trade off Plaintiff’s goodwill will continue to cause Plaintiff harm.”
NanoLabs is demanding a jury trial and is seeking at least $5 million in damages from Coinbase, as well as corrective advertising to restore the value of its intellectual property The plaintiff also wants Coinbase to delete all marketing materials, and other articles bearing the Nano Bitcoin and Ether Marks.
A copy of the original filing can be found here.
