The company Ripple Labs filed a formal lawsuit against YouTube LLC in the Northern District of California, which is related to the failure of the social network to stop the fraudsters and imitators of the xrp currency.
The plaintiffs, named Ripple Labs and their CEO Brad Garlinghouse, are taking action against YouTube to “spark industry-wide behavior change and set expectations for accountability,” according to an official company post.
The company’s arguments are related to: 1) Violations of the Lanham Law for trademark infringement; (2) Violations of publicity rights under California law and common law, and 3) Violations of California unfair competition law.
Specifically, the scam consists of phishing attacks against social network channels, through malicious emails. Attackers take over the YouTube channels of content creators, often those with legitimate links to Ripple.
The lawsuit claims that YouTube knowingly benefits from the fraudsters’ actions, despite having the ability to stop them.
“YouTube profits from the scam by knowingly selling paid ads on behalf of scammers posing as Ripple and Mr. Garlinghouse. These ads, called ‘video discovery ads’, are controlled by YouTube to appear on the side top of your search results page along with organic search results”.