It looks the now collapsed Bitcoin exchange, Mt. Gox is expected to sell the trademarked word Bitcoin and raise at least ¥100 million, or about $1 million. It will be selling a package that includes the Bitcoin trademarks in Japan and the European Union as well as the bitcoins.com domain name that it possesses.
The decision came to light when Tibanne, the holding company of collapsed Bitcoin exchange Mt.Gox, was highlighted by media. The company has trademark right on the word ‘Bitcoin’ and hopes that selling it could raise at least 100m yen i.e. $1m, €0.72m, £0.58m. However, it is unclear if any money from the sale of the rights would be paid back to the creditors of Mt. Gox.
Mt. Gox owns millions of dollars to creditors. However, the lawyers familiar with bankruptcy proceedings with the company say that Tibanne has no legal obligation to repay the 127,000 creditors of the exchange. Now, it would have to be seen what the reaction would be of the creditors who have lost their investment due to mismanagement from the company.
Tibanne is the same company which was headed by former Mt. Gox chief Mark Karpeles who has been accused of financial wrongdoings by the company staff. However, the best part with the company was that it got trader ‘Bitcoin’ registered in its name in Japan and the EU in 2012 and that may pay dividend now for it.
Creditors Still Waiting for Compensation for Their Losses
Nonetheless, the trademark rights are going to last till 2021 in the EU and in 2022 in Japan. Though the company may renew them for a further period, the economic condition of the owners does not seem to permit them for it and they are interested to sell it for attractive payment from any party.
The major problem will always be the reaction from the creditors who lost their money in Mt. Gox. Though Tibanne says that it is a different entity, it is known that it was effectively the operator of the troubled Bitcoin exchange since Mt. Gox had no staff and the two companies even shared the same office address in Tokyo’s Shibuya district.
Whereas the effort from Tibanne’s lawyers will always be to prove that their client was not an extension of Mt. Gox and creditors cannot claim their losses, the creditors are going to contest the fact that the two companies were actually one even if they looked two. They had same office and the staff for the entire duration.
To contact the reporter of this story: Deepak Tiwari at email@example.com