Case 1:18-cv-02897-JPO Document 1 Filed 04/02/18 Page 1 of 33 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ALIBABA GROUP HOLDING LIMITED, Plaintiff, Case No. -against- JURY TRIAL DEMANDED ALIBABACOIN FOUNDATION a/k/a ABBC FOUNDATION, ABBC BLOCK CHAIN IT SOLUTIONS LLC, ALIBABACOIN GENERAL TRADING FZE, ALIBABACOIN FOUNDATION LLC, JASON DANIEL PAUL PHILIP, HASAN ABBAS, Defendants. COMPLAINT Plaintiff Alibaba Group Holding Limited, (“Alibaba Group Holding” or “Plaintiff”) states the following for its Complaint against Defendants ALIBABACOIN Foundation a/k/a ABBC Foundation (“ABBC”), ABBC Block Chain IT Solutions LLC, Alibabacoin General Trading FZE, Alibabacoin Foundation LLC, Jason Daniel Paul Philip, and Hasan Abbas (collectively, “Defendants”). INTRODUCTION This action arises from Defendants’ unlawful scheme to misappropriate Plaintiff’s renowned brand name in order to deceive investors in the U.S. and around the world. With a single-minded focus to capitalize on Plaintiff’s reputation for success, Defendants constructed a ploy to use Plaintiff’s trademarked name “ALIBABA” to raise over $3,500,000 in Defendants’ cryptoassets (so-called “AlibabaCoins” or “ABBC Coins”) from investors through Initial Coin Offerings (“ICOs”) that are neither registered nor approved by U.S. regulators. Case 1:18-cv-02897-JPO Document 1 Filed 04/02/18 Page 2 of 33 Alibaba Group Holding owns numerous trademarks registered with the United States Patent and Trademark Office (the “USPTO”) for the term “ALIBABA” and for other related terms. In addition, Alibaba Group Holding owns common law rights to these marks through their extensive and continuous use in New York and other States in the United States. Alibaba Group Holding and its operating subsidiaries (the “Alibaba Group companies,” collectively “Alibaba”) have spent many years, and substantial resources, building public confidence and consumer goodwill in these marks. As a result of these efforts, Alibaba Group Holding has become one of the most renowned and successful businesses in the world. Defendants have elected to attempt a less laborious path to success. Rather than build independent value in their brand and the products and services they offer, Defendants have engaged in a willful and concerted campaign to cause the public to believe falsely that Alibaba is the source of Defendants’ products and services, or that such products and services are endorsed or sponsored by, or otherwise associated or affiliated with, Alibaba. Defendants prominently feature trademarks owned by Alibaba Group Holding, in whole and without alteration, in countless instances in materials they make publicly available on the internet, including in offering materials that solicit investment from investors in the U.S. and elsewhere. And, lest there be any doubt in consumers’ minds as to whether Defendants are associated with Alibaba Group Holding, those same materials brazenly and explicitly assert that is the case. There is already actual confusion as to whether Alibaba is the source of Defendants’ services and products, or whether such services and products are endorsed or sponsored by, or otherwise associated or affiliated with, Alibaba. Indeed, some news outlets have already begun reporting that Plaintiff and Defendants are affiliated, and others have speculated whether that is the case. Unless Defendants are enjoined from continuing their intentionally misleading use of 2 Case 1:18-cv-02897-JPO Document 1 Filed 04/02/18 Page 3 of 33 Alibaba Groups Holding’s trademarks, they will continue to capitalize unfairly on the goodwill inherent in those marks, deceiving the public and impairing and diluting the value of those marks. NATURE OF ACTION 1. This is an action at law and in equity for trademark infringement, false designation of origin, false advertising, dilution, and related wrongs. Alibaba Group Holding’s claims against Defendants arise under the Trademark Act of 1946, 15 U.S.C. §§ 1051 et seq. (the “Lanham Act”), the common law of New York, and New York General Business Law § 360-l. THE PARTIES 2. Alibaba Group Holding is a Cayman Islands company with its principal place of business in Hangzhou, People’s Republic of China. 3. Upon information and belief, Defendant ALIBABACOIN Foundation is a commercial organization based in Dubai, U.A.E., with offices in Dubai and Minsk, Belarus. Upon information and belief, ALIBABACOIN Foundation is also known as AlibabaCoin Foundation, Alibabacoin Foundation, and ABBC Foundation. 4. Upon information and belief, Defendants ABBC Block Chain IT Solutions LLC, and Alibabacoin General Trading FZE are business segments and/or subsidiaries of ABBC with offices in Dubai, U.A.E. 5. Upon information and belief, Defendant Alibabacoin Foundation LLC is a subsidiary or affiliate of ABBC with offices in Minsk, Belarus. 6. Upon information and belief, Defendant Jason Daniel Paul Philip is a Malaysian national residing in Dubai, U.A.E., and is the Founder and Chief Executive Officer of ABBC. 7. Upon information and belief, Defendant Hassan Abbas is an individual residing in Dubai, U.A.E., and is the co-founder and Chief Technical Officer of ABBC. 3 Case 1:18-cv-02897-JPO Document 1 Filed 04/02/18 Page 4 of 33 JURISDICTION AND VENUE 8. This Court has subject matter jurisdiction over the federal claims for trademark infringement, false designation of origin, false advertising, dilution, and related wrongs under 28 U.S.C. §§ 1331, 1338(a). This Court has subject matter jurisdiction over the state claims under 28 U.S.C. § 1367(a). 9. This Court has personal jurisdiction over the Defendants because Defendants are specifically targeting their products and services to, and soliciting investment from, consumers in New York and, more generally, the United States. ABBC’s CEO prominently states on the ABBC Website that: “[AlibabaCoin’s] Blockchain technology will be the world’s leading software platform for digital assets . . . We are planning to distribute this service to over 81 countries and allow an abundant supply of our solutions. We are truly going to become the leading blockchain specialists.” (emphases added). A true and correct copy of the Defendants’ website is attached hereto as Exhibit 1. Defendants’ advertising and offering materials state the anticipated value of the ABBC Coin in U.S. dollars. Further, Defendants’ advertising materials explicitly note that they will make Defendants’ cryptocurrency available on U.S.-based crypto-asset trading platforms (also known as “cryptocurrency exchanges”), including Gemini (based in New York), itBit (based in New York), Coinbase, Poloniex and Bittrex. ABBC White Paper, at 72, 80. A true and correct copy of ABBC’s White Paper is attached hereto as Exhibit 2. Upon information and belief, Defendants’ representatives and/or employees have directly targeted U.S. investors by offering to sell ABBC Coins and/or soliciting investment in Defendants’ ICOs. 10. Venue is proper in this District under 28 U.S.C. § 1391(b) & (c). 4 Case 1:18-cv-02897-JPO Document 1 Filed 04/02/18 Page 5 of 33 FACTUAL BACKGROUND I. Alibaba Group Holding’s Trademarks 11. Alibaba Group Holding is the owner of United States Trademark Reg. No. 2,589,009 which covers the mark “ALIBABA.COM” for use in, among other things “BUSINESS SERVICES, NAMELY FACILITATING THE TRANSACTION OF BUSINESS VIA LOCAL AND GLOBAL COMPUTER NETWORKS . . . .” A true and correct copy of Reg. No. 2,589,009 is attached hereto as Exhibit 3. The mark was registered July 2, 2002, and has been in continuous use since that date. It is therefore incontestable pursuant to 15 U.S.C. § 1065, which means that it is “conclusive evidence of the validity of the registered mark and of the registration of the mark, of [Alibaba Group Holding’s] ownership of the mark, and of [Alibaba Group Holding’s] exclusive right to use the registered mark in commerce.” See 15 U.S.C. § 1115(b). 12. Alibaba Group Holding is the owner of United States Trademark Reg. No. 2,829,317, which covers the mark “ALIBABA” for use in computer software, including “for use in exchanging information via global computer networks and online from a computer database and the Internet.” A true and correct copy of Reg. No. 2,829,317 is attached hereto as Exhibit 4. The mark was registered April 6, 2004, and has been in continuous use since that date. It is therefore incontestable pursuant to 15 U.S.C. § 1065, which means that it is “conclusive evidence of the validity of the registered mark and of the registration of the mark, of [Alibaba Group Holding’s] ownership of the mark, and of [Alibaba Group Holding’s] exclusive right to use the registered mark in commerce.” See 15 U.S.C. § 1115(b). 13. Alibaba Group Holding is the owner of United States Trademark Reg. No. 2,851,634, which covers the mark “ALIBABA” for use in “computer services, namely, software design and development for others.” A true and correct copy of Reg. No. 2,851,634 is attached Case 1:18-cv-02897-JPO Document 1 Filed 04/02/18 Page 6 of 33 hereto as Exhibit 5. The mark was registered June 8, 2004, and has been in continuous use since that date. It is therefore incontestable pursuant to 15 U.S.C. § 1065, which means that it is “conclusive evidence of the validity of the registered mark and of the registration of the mark, of [Alibaba Group Holding’s] ownership of the mark, and of [Alibaba Group Holding’s] exclusive right to use the registered mark in commerce.” See 15 U.S.C. § 1115(b). 14. Alibaba Group Holding is the owner of United States Trademark Reg. No. 2,579,498, which covers the mark “ALIBABA” for use in, among other things “[m]arket research and business consulting services” and “[p]roviding an interactive web site on a global computer network for third parties to post information, respond to requests and place and fulfill orders for products, services and business opportunities.” A true and correct copy of Reg. No. 2,579,498 is attached hereto as Exhibit 6. The mark was registered June 11, 2002, and has been in continuous use since that date. It is therefore incontestable pursuant to 15 U.S.C. § 1065, which means that it is “conclusive evidence of the validity of the registered mark and of the registration of the mark, of [Alibaba Group Holding’s] ownership of the mark, and of [Alibaba Group Holding’s] exclusive right to use the registered mark in commerce.” See 15 U.S.C. § 1115(b). 15. Alibaba Group Holding is the owner of United States Trademark Reg. No. 4,820,371, which covers the mark “ALIBABA” for use in media materials, insurance services, transportation services, and education. A true and correct copy of Reg. No. 4,820,371 is attached hereto as Exhibit 7. The mark was registered September 29, 2015. 16. Alibaba Group Holding is the owner of United States Trademark Reg. No. 2,809,993, which covers the mark: 2 Case 1:18-cv-02897-JPO Document 1 Filed 04/02/18 Page 7 of 33 for use in connection with computer software. A true and correct copy of Reg. No. 2,809,993 is attached hereto as Exhibit 8. The mark was registered February 3, 2004, and has been in continuous use since that date. It is therefore incontestable pursuant to 15 U.S.C. § 1065, which means that it is “conclusive evidence of the validity of the registered mark and of the registration of the mark, of [Alibaba Group Holding’s] ownership of the mark, and of [Alibaba Group Holding’s] exclusive right to use the registered mark in commerce.” See 15 U.S.C. § 1115(b). 17. Alibaba Group Holding is the owner of United States Trademark Reg. No. 2,851,633, which covers the mark: for use in computer services, “namely, software design and development for others.” A true and correct copy of Reg. No. 2,851,633 is attached hereto as Exhibit 9. The mark was registered June 8, 2004, and has been in continuous use since that date. It is therefore incontestable pursuant to 15 U.S.C. § 1065, which means that it is “conclusive evidence of the validity of the registered mark and of the registration of the mark, of [Alibaba Group Holding’s] ownership of the mark, and of [Alibaba Group Holding’s] exclusive right to use the registered mark in commerce.” See 15 U.S.C. § 1115(b). 18. Alibaba Group Holding is the owner of United States Trademark Reg. No. 4,363,019, which covers the mark: 3 Case 1:18-cv-02897-JPO Document 1 Filed 04/02/18 Page 8 of 33 for use in media materials, insurance services, transportation services, and education. A true and correct copy of Reg. No. 4,363,019 is attached hereto as Exhibit 10. The mark was registered July 9, 2013. 19. Alibaba Group Holding is the owner of United States Trademark Reg. No. 4,843,756, which covers the mark: for use in, among other things “[s]cientific and technological services, namely, research and design in the fields of telecommunications software and hardware design, Internet technology.” A true and correct copy of Reg. No. 4,843,756 is attached hereto as Exhibit 11. The mark was registered November 3, 2015. 20. Alibaba Group Holding is the owner of United States Trademark Reg. No. 4,737,751, which covers the mark: for use in, among other things “[s]cientific and technological services, namely, research and design in the fields of telecommunications software and hardware design, Internet technology.” A true and correct copy of Reg. No. 4,737,751 is attached hereto as Exhibit 12. The mark was registered May 19, 2015. 21. Alibaba Group Holding owns common law rights to the trademarks set out in Paragraphs 11-20 through the extensive and continuous use by the Alibaba Group companies of 4 Case 1:18-cv-02897-JPO Document 1 Filed 04/02/18 Page 9 of 33 those marks in New York and other States in the United States (the “Common Law Marks,” and together with the registered trademarks set out in Paragraphs 11-20, the “ALIBABA Marks”). 22. Based on the extensive use of the ALIBABA Marks in connection with the many businesses of the Alibaba Group companies, the ALIBABA Marks have taken on secondary meaning among consumers as marks unique to and associated with Alibaba Group Holding and the Alibaba Websites. 23. Alibaba Group Holding also owns trademarks for variations on the “ALIBABA” name, including: a. United States Trademark Reg. No. 4,033,067 for the mark “ALI-ADVANCE.” A true and correct copy of Reg. No. 4,033,067 is attached hereto as Exhibit 13. The mark was registered October 4, 2011, and has been in continuous use since that date. It is therefore incontestable pursuant to 15 U.S.C. § 1065, which means that it is “conclusive evidence of the validity of the registered mark and of the registration of the mark, of [Alibaba Group Holding’s] ownership of the mark, and of [Alibaba Group Holding’s] exclusive right to use the registered mark in commerce.” See 15 U.S.C. § 1115(b). b. United States Trademark Reg. No. 4,263,119 for the mark “ALIPROTECT.” A true and correct copy of Reg. No. 4,263,119 is attached hereto as Exhibit 14. The mark was registered December 25, 2012, and has been in continuous use since that date. It is therefore incontestable pursuant to 15 U.S.C. § 1065, which means that it is “conclusive evidence of the validity of the registered mark and of the registration of the mark, of [Alibaba Group Holding’s] ownership of the 5 Case 1:18-cv-02897-JPO Document 1 Filed 04/02/18 Page 10 of 33 mark, and of [Alibaba Group Holding’s] exclusive right to use the registered mark in commerce.” See 15 U.S.C. § 1115(b). c. United States Trademark Reg. No. 4,130,144 for the mark “ALICLOUD.” A true and correct copy of Reg. No. 4,130,144 is attached hereto as Exhibit 15. The mark was registered April 24, 2012, and has been in continuous use since that date. It is therefore incontestable pursuant to 15 U.S.C. § 1065, which means that it is “conclusive evidence of the validity of the registered mark and of the registration of the mark, of [Alibaba Group Holding’s] ownership of the mark, and of [Alibaba Group Holding’s] exclusive right to use the registered mark in commerce.” See 15 U.S.C. § 1115(b). d. United States Trademark Reg. No. 4,626,611 for the mark “ALIEXPRESS.” A true and correct copy of Reg. No. 4,626,611 is attached hereto as Exhibit 16. The mark was registered October 28, 2014. 24. Alibaba Group Holding has also applied to register trademarks for additional variations on the “ALIBABA” name, including: a. “ALIBABA MIND SPORTS,” a true and correct copy of the application for which is attached hereto as Exhibit 17. b. “ALISPORTS,” a true and correct copy of the application for which is attached hereto as Exhibit 18. c. “ALIBABA TRADE MANAGER,” a true and correct copy of the application for which is attached hereto as Exhibit 19. d. The mark: 6