Coinbase hit with proposed trademark lawsuit over Nano derivative products
Crypto exchange Coinbase has been named as a defendant in a legal complaint filed by NanoLabs – the company behind the digital currency Nano (NANO) – over alleged trademark infringement.
In the February 24 filing in California Northern District Court, NanoLabs alleged that Coinbase’s Nano Bitcoin futures contract and Nano Ether futures contract products infringe on trademark rights owned by them.
It also alleges that the infringement has caused NanoLabs financial harm and weakened its brand identity, resulting in “actual injury and irreparable harm.”
Colin LeMahieu founded the digital currency Nano in 2014; which was originally called RaiBlocks. It was renamed Nano on 31 January 2018.
Years later, Coinbase launched its Nano Bitcoin futures contract on June 27, 2022, and its Nano Ether futures contract on August 29, 2022.
In the complaint, NanoLabs claimed that the offerings launched by Coinbase are “derivative products” based on Bitcoin (BTC) and Ethereum (ETH), which “are identical or very similar” to the Nano digital currency.
It also argued that Coinbase targets the same type of consumers as NanoLabs, such as “those seeking to invest in and use a digital currency,” and that the trademarks for Coinbase’s products “are identical, and […] confusingly similar,” to NanoLabs.
It is also claimed that Coinbase had full knowledge of the Nano digital currency before launching its products due to correspondence between the two companies that began in 2018, which later resulted in Coinbase allegedly denying NanoLab’s application to list Nano on Coinbase.
“Since at least October 17, 2018, various department heads and directors, as well as employees, in various departments at Coinbase have been aware of Nano Digital Currency.”
NanoLabs further argued that Coinbase should “have known that offering Nano Bitcoin on the Coinbase Derivates Exchange would only cause consumer confusion.”
“Particularly because Nano Digital Currency is not listed on the Coinbase Exchange and Defendants provide no disclaimer, distinction or otherwise to educate consumers to this point,” the court documents state.
Related: Judge rejects proposed class action lawsuit alleging sale of Coinbase securities
NanoLabs is asking 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.
NanoLabs is also seeking at least $5 million in damages, corrective advertising by Coinbase, destruction of all material infringing the Nano trademarks, and forfeiture of all profits Coinbase earned from the use of the Nano trademarks. It has requested a jury trial.
Cointelegraph contacted both Coinbase and NanoLabs for comment, but did not receive a response by the time of publication.
