Blog Post

Jul 27, 2018

California Federal Court Denies Preliminary Injunction In “Blockchain” Dispute

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How different is a celebrity-focused “cryptocollectible” from a celebrity-focused “cryptocurrency,” and how similar does it have to be to constitute a trade secret? That was the question facing the Southern California federal district court in deciding a motion for a preliminary injunction in Founder Starcoin v. Launch Labs, Inc., No. 18-CV-972 JLS (MDD) (S.D. Cal. July 9, 2018). Defendant Launch Labs, d/b/a Axiom Zen, is the developer of “CryptoKitties,” a game that uses the Ethereum blockchain technology to “allow[] users to securely buy, sell, trade, and breed genetically unique virtual cats.” Plaintiff Starcoin has a business plan to create a “regulated exchange” for secure “tokens” representing celebrities that can be bought and sold, not just by typical investors, but by a celebrity’s fans as well.

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