An exclusive Wu report says that Huobi founder, Li Lin formally sued Huobi Global today, Wednesday, June 21, in Hong Kong Special Administrative Region. The reason is that Huobi Global is still using its Chinese trademark 火币, an action that was not part of the original acquisition deal.
The Wu Talk report said that X-Spot Co. Ltd, a company that belongs to Li Lin, filed the suit on his behalf, alleging trademark infringement, at a high court in Hong Kong.
Not a part of the acquisition deal
The filing stated that Huobi continued to use the exchange’s Chinese trademark after its acquisition by Justin Sun, the Tron co-founder, despite the fact that it was not part of the agreement that gave Huobi Global acquisition rights to the company.
The filings in the court said that the copyright still belongs to X-Spot Co. Ltd, and Huobi has been infringing on it through its unauthorized use.
Buyer prohibited from using the “Huobi” trademark
The report continues,
“When the original shareholders transferred their Huobi Global shares to About Capital Management, they expressly agreed to retain the exclusive rights to the “Huobi” trademark and ensure that these rights will not be transferred to the buyer or Huobi. The equity transfer and asset delivery agreement between the two parties clearly stipulates that the buyer is prohibited from using the “Huobi” trademark and brand.”
Justin Sun, the Tron co-founder acquired Huobi for over $1 billion last year. Wu hinted that the recent lawsuit may not be unconnected to Sun freezing Li Lin’s brother’s account and accused him of dumping HT this year.