Hong Kong High Court Rules Against Huobi Global in Trademark Infringement Lawsuit

The court affirmed that the defendant’s actions constituted an infringement of the plaintiff’s trademark rights.

The background of the case involves the transfer of Huobi Global Limited’s shares to About Capital Management, with explicit agreements that the original shareholders, including X-Spot Co., Ltd., would retain exclusive rights to the “Huobi” trademark.

The equity transfer and asset delivery agreement explicitly prohibited the buyer from using the “Huobi” trademark and brand.

The legal action gained traction when Huobi founder Li Lin accused the crypto exchange of violating the agreement by resuming the use of the “Huobi” trademark without permission. The lawsuit claimed that Huobi Global Limited’s actions went against the terms outlined in the acquisition contract.

The legal dispute also highlighted tensions between Li Lin and Tron Founder Justin Sun, as the lawsuit mentioned the reutilization of the trademark after accusations that Li Lin’s brother dumped large amounts of Huobi’s native token (HT).

The recent ruling adds complexity to Huobi’s legal challenges, as it faces regulatory issues, including a recent order from Malaysian authorities to cease operations in the country due to alleged illegal operations.