The encrypted messaging platform Telegram has to pay legal fees worth $625,000 to a cryptocurrency company as an aftermath of a lawsuit dating back to 2018.
All Because Of The “GRAM” Trademark
Telegram Messenger Inc. has been ordered to pay legal fees to crypto firm Lantah LLC after it dropped the lawsuit in August this year. As per the official court documents, U.S. District Judge Charles Breyer granted $618,240 in attorney fees for reportedly 1,030.4 hours’ work, billed at the price of $600 per hour.
According to the documents, Lantah LLC has issued compensation at the rate of 900$ per hour. However, the judge has ordered the fees to meet market rates for such services.
In 2017, Telegram began developing a blockchain network, using the name GRAM for its native cryptocurrency. The company initiated a coin offering (ICO) raising $1.7 billion for GRAMs.
Back in May 2018, the tech company issued an official court dispute against Lantah LLC for common law trademark violation, unfair competition, and false designation of origin in an attempt to launch the so-called GRAM token.
Furthermore, Lantah LLC filed a counter-lawsuit in June 2018, showing the priority over the trademark GRAM, because the company had filed an official application for the name with the U.S. Patent and Trademark office in late-2017.
However, the lawsuit was dropped by Telegram in August this year, after the halt of the TON project in May.
Problems With SEC As Well
Earlier this year, it also became clear that Telegram wouldn’t be able to issue its GRAM tokens. As CryptoPotato reported in March, the U.S. District Court granted an injunction against the company in its lawsuit filed by the Securities and Exchange Commission (SEC). The halt of the token sale was because it was unregistered and failed to comply with regulations.
The U.S. Security Exchange Commission asked the court to order Telegram to give back $1.2 billion to investors who participated in the firm’s $1.7 billion ICO for the failed TON project.