Hive, the recent hard fork from the disgruntled Steem members is already facing legal issues. This comes only four days after the successful transition.
As reported by CryptoZink, the Steem community accused Justin Sun of hastily taken over the social blogging network, Steemit. Sun owns 20% of the platform’s native token, Steem.
As a result, an angry Steem community decided to fork both the chain and token, moving 80% of tokens to and platform to Hive.io ecosystem.
However, it turns out Hive blockchain has allegedly infringed into another blockchain-based business with their name section.
Hive Blockchain’s Steem hard fork, Hive cease and desist letter
As stated by the firm’s press release, using the word “Hive” will create confusions; therefore, making it hard for users to differentiate between the two brands. Furthermore, Hive Blockchain claimed that shareholders are already asking if the Hive hard fork associated with the firm.
Founded by Olivier Roussy Newton in 2013, the company says on it’s website its goal is to:
“accelerate the development of the blockchain sector through traditional capital markets and create long-term shareholder value.”
The cease and desist letter states that Steem’s fork is profiting from brand reputation. Moreover, the letter says developers have spent a load of resources, including money to create and established in the crypto space.
Frank Holmes, the firm’s temporary executive chairman said:
“As an early leader in the blockchain sector, we have invested significant amounts of money in developing our brand and educating the capital markets on blockchain technology and cryptocurrencies.”
Furthermore, Holmes made it clear that the mining firm has no problem with the Steem hard fork, other than sharing the same name.
“However, for legal reasons, we have no option but to seek to protect our interests, dispel the ongoing confusion and avoid any potential damage to our reputation. We are hopeful this can be easily resolved with a name change. Any continued usage by the Blockchain will only evidence an intentionally predatory, misleading and fraudulent strategy.”
Hive Blockchain mines only bitcoin. However, the mining company announced early this month it will refocus 20% of its resource to Ethereum (ETH) mining.