X-SPOT GLOBAL LIMITED has secured a favorable ruling in a trademark infringement case against Huobi Global Limited from the High Court of the Hong Kong Special Administrative Region. The court granted an interim injunction restraining Huobi Global Limited from utilizing the “Huobi” trademark or any comparable name or logo in Hong Kong throughout the trial.
The conflict revolves around the trademark rights owned by X-SPOT GLOBAL LIMITED, the controller of X-Spot Co., Ltd. The plaintiff claimed exclusive rights to the “Huobi” trademark and accused Huobi Global Limited of using it without authorization.
The legal proceeding was initiated due to Huobi Global’s purported violation of the trademark, which constitutes a breach of the initial acquisition agreement.
Upon uncovering the trademark infringements, X-Spot promptly issued several notices to Huobi Global and its affiliates, insisting on an immediate cessation of these activities.
Nevertheless, Huobi Global opted to disregard these warnings, continuing its trademark infringement. In one instance, it altered its name from “Huobi Global” to “Huobi” and a phonetically similar Chinese name, “火必.”
In response, on June 20, 2023, X-Spot filed an application for an injunction with the Hong Kong High Court, aiming to compel Huobi Global to stop its trademark infringement. The legal proceedings took a twist on August 7, 2023, when Huobi Global sought to revoke the Service Out Order and suggested an alternative resolution through arbitration.
The case’s context encompasses the transfer of shares from Huobi Global Limited to About Capital Management, under clear agreements that the original shareholders, including X-Spot Co., Ltd., would maintain exclusive rights to the “Huobi” trademark.
The agreement for the transfer of equity and assets explicitly forbade the buyer from utilizing the “Huobi” trademark and brand, prompting the court to confirm that the actions of the defendant amounted to a violation of the plaintiff’s trademark rights.
The legal proceedings gained momentum when Li Lin, the founder of Huobi, accused the crypto exchange of breaching the agreement by reusing the “Huobi” trademark without authorization. The lawsuit asserted that the actions of Huobi Global Limited contradicted the terms specified in the acquisition contract.
The legal conflict highlights the strained relationship between Li Lin and Justin Sun, the Founder of Tron. The lawsuit pointed out the reuse of the trademark following allegations that Li Lin’s brother had sold substantial quantities of Huobi’s native token (HT).
The recent court decision adds a layer of complexity to Huobi’s legal troubles, coinciding with its regulatory challenges. This includes a recent directive from Malaysian authorities instructing Huobi to halt operations in the country due to alleged illegal activities.
Meanwhile, Huobi recently underwent a rebranding and adopted the name HTX in September 2023. And on November 22, HTX suffered an exploit that led to the loss of $30 million to a hacker.
The HTX Eco (HECO) Chain bridge, which includes HTX, Tron, and BitTorrent, was also compromised on the same day, losing $86.6 million. While Poloniex, also under Sun’s ownership, experienced a $100 million attack on November 10.
