In a bid to protect the burgeoning blockchain and cryptocurrency sector, the Cryptocurrency Open Patent Alliance (COPA) has teamed up with Unified Patents to initiate a campaign aimed at combating "patent trolls." Announced on October 1, the "Blockchain Zone" campaign seeks to address the challenges posed by non-practicing entities (NPEs) that threaten innovation through aggressive patent litigation.
Understanding Patent Trolls and Their Impact
Patent trolls, or hoarders, are entities that acquire patents with no intention of using them in practice. Instead, they aim to profit by licensing these patents or filing lawsuits against companies that use similar technologies without permission. According to Unified Patents, these entities accounted for 58% of all patent litigation in the United States last year, predominantly targeting technology companies—95% of the time.
COPA's partnership with Unified Patents is poised to safeguard blockchain developers and firms from "unwarranted and costly" legal claims by these patent trolls. The alliance will focus on a range of blockchain-related technologies, including non-fungible tokens (NFTs), digital wallets, and smart contracts, which are increasingly being scrutinized by NPEs.
The Need for Action
"Patent trolls are barriers in the path of innovation," stated Paul Grewal, the legal chief at Coinbase. He emphasized the necessity of addressing these issues to ensure the crypto community can continue building and evolving the crypto-economy. Unified Patents CEO Kevin Jakel echoed this sentiment, highlighting that the collaboration would prevent the crypto sector from facing the baseless patent assertions that have hindered other industries.
Recent Developments in the Crypto Patent Space
The crypto space has recently witnessed notable instances of alleged patent trolling. In September, the DeFi Education Fund (DEF) took action against True Return Systems, which had filed infringement claims against prominent crypto protocols MakerDAO (now known as Sky) and Compound Finance. DEF acquired the patent related to "linking offchain data to a blockchain" as part of a settlement, effectively ending the claims against these protocols.
Additionally, the Ethereum Name Service (ENS) is currently challenging a patent awarded to its competitor, Unstoppable Domains, which asserts that it developed technology using blockchain for domain determination. ENS argues that it was the pioneer of this technology, highlighting the ongoing conflicts within the sector over intellectual property rights.
Looking Ahead
The launch of the "Blockchain Zone" represents a significant step in protecting the integrity and innovation of the cryptocurrency and blockchain industries. By addressing the challenges posed by patent trolls, COPA and Unified Patents aim to foster an environment where developers can innovate without fear of costly litigation.
October 2024, Cryptoniteuae