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Block Inc., a facilitator of digital payments, is legally pursuing Bitcoin.com for alleged trademark infringement concerning the recently launched Verse token, which successfully concluded a $33.6 million private sale in May 2022.
Jack Dorsey founded Block in 2009, renaming it from Square in December 2021 when its emphasis turned to blockchain technology and Bitcoin. Since leaving his position as CEO of Twitter in November 2021, Dorsey has shifted his attention more and more to Bitcoin hardware and payment systems.
CEO of Bitcoin.com Dennis Jarvis and legal counsel Joseph Collement, attorneys for Block, claimed in a letter to Bitcoin.com that the use of “Verse” by Bitcoin.com violates German trademark law. The letter on August 10 responded to a notice sent on July 4 by Block’s legal representatives, Bird & Bird, outlining the details of its trademark infringement claim in Germany.
According to Block’s legal counsel, the VERSE app by Block is accessible on both Apple and Android devices across Europe, including Germany. Block’s rights over a figurative mark containing the word “Verse” and the “VERSE” word mark were outlined in the letter the legal advisors delivered, with priority given to computer and application software for mobile devices. According to German trademark law, using the designation “VERSE” violates the Block’s trademarks.
Verse Technologies Inc. and Decentralized Global Payments S.L. were acquired in 2020, the source of the alleged trademark infringement.
A peer-to-peer payment application called “VERSE” is also part of the Verse and Decentralized Portfolio. Since the takeover, this program has been run by our customers.
Why did the conflict take place?
Block’s legal team informed Bitcoin.com via letters in July and August 2022 that its use of the name “Verse” and the stylized all-caps word “VERSE” violated German trademarks. Block Inc. sought a written commitment from Bitcoin.com to stop using the Verse/VERSE names in the E.U. It also threatened additional legal action and a fine of EUR10,000 for each “contravention” that occurred after the deadline.
The Block has claims against Bitcoin.com to stop the infringements, according to the letter delivered to the company. Additionally, the former has claims for disclosure of the extent of the infringing activities and for payment for all losses the business has experienced or will subsequently incur due to the infringement. The Block is also entitled to compensation for the expenses they incurred.
What is the final take?
Trademark infringement occurs when another person uses your trademark without permission, thus creating confusion among consumers and tarnishing your reputation.
According to Block’s legal counsel, Bitcoin.com was asked to sign a statement of discontinuance and undertaking by August 17 or risk further legal action. Additionally, it demanded that Bitcoin.com stop operating its Verse token in the E.U. or risk a contractual fine of $10,400 (10,000 euros) for each infraction.
Conclusion
Answer keys purchasing Decentralized Global Payments S.L. and Verse Technologies Inc. two years ago, Block Inc. launched the project with the same name. In this instance, Chainlink’s Verse ecosystem competes with Chainlink’s mobile payments app, VERSE, in a related-yet-different market space.
With over 35 million wallets and 5 million active users, the Bitcoin.com/ Chainlink VERSE project is part of the Chainlink BUILD initiative. The VERSE “utility token” serves as the ecosystem’s currency and comprises the BUILDS development framework, several decentralized applications (DApps), and DeFi services.