NanoLabs Files Lawsuit Against Coinbase Over Trademark Infringement

Another multi-million dollar lawsuit has been launched against Coinbase despite the existence of much ongoing litigation. The recent action was brought forward by NanoLabs Inc. over an alleged trademark infringement of its Nano derivative products. 

According to the filing, NanoLabs alleges that Coinbase’s use of the word Nano or derivatives such as Nano Bitcoin, Nano Ether, and Nano Bitcoin Futures constitutes an imitation of its Nano Marks. 

Furthermore, NanoLabs claims that Coinbase actions are intentional and willful because the exchange only started using Nano Bitcoin and Ether Marks in June 2022. This was several years after NanoLabs had developed its Nano Marks and associated goodwill in the Nano Digital Currency.

NanoLabs also alleged that the defendant’s use of the Nano marks without its authorization and consent has prevented it from gaining any potential financial advantage from its interactions with retail brokers, clearing companies, and digital exchanges.

Interestingly, Nano is a cryptocurrency that runs on open-source, decentralized blockchain technology. After being introduced in 2015 under the name RaiBlocks, it changed its name to Nano in 2018. The currency intends to offer scalable infrastructure, quick transactions, and no fees.

NanoLabs Seeks Relief from Coinbase

NanoLabs highlighted that it has suffered irreparable harm as a result of the infringement by Coinbase. The firm added that available legal remedies are insufficient as compensation. 

The plaintiff has, therefore, asked the court to enter a judgment against Coinbase, which include an award of not less than $5 million, disgorgement of the defendant’s profits, and payment of its legal fees. Plaintiff also requested an order requiring Coinbase to engage in corrective advertising to restore the value of its intellectual property.

In addition to seeking monetary damages, the plaintiff is also asking for an injunction to prevent the defendants from using the term Nano, the Nano Marks, the Nano Bitcoin and Ether Marks, and any similar marks in connection with their goods, services, or activities.

Interestingly, this is not the first time Coinbase is being sued over infringement rights. The firm was slammed with $350 million in damages for violating Veritaseum Capital’s patent rights. 

Similarly, Coinbase is also expected to pay a fine of $100 million to New York regulators for violating the anti-money laundering (AML) laws.