Crypto advocacy group COPA has partnered with Unified Patents to launch a campaign targeting βpatent trolls.β
Protecting Blockchain Developers
According to an Oct. 1 announcement, the Cryptocurrency Open Patent Alliance teamed up with Unified Patents, a member-based organization specializing in patent advisory services, to create the βBlockchain Zone.β The initiative seeks to protect blockchain developers and companies from legal challenges brought by non-practicing entities and patent trolls that aim to profit from these litigations.
Understanding Patent Trolls
For those unaware, patent trolls are individuals or organizations that hold patents for the sole purpose of profiting from them through licensing or litigation, often without any intention to develop or use the technology themselves.
Founded in 2020 by Jack Dorsey, the fintech firm Block, formerly Square, COPA focuses on ensuring that key crypto technologies remain free for all to use. Prominent COPA members include MicroStrategy, Worldcoin, Kraken, and Blockstream, among others.
Industry Leaders Speak Out
COPA founding member Coinbaseβs Chief Legal Officer, Paul Grewal, emphasized the need to stop such entities, calling patent trolls βbarriers in the path of innovationβ and adding that they hinder progress and stifle creativity.
Reportedly, NPEs were responsible for 58% of all patent litigations last year, and the majority of the cases were directed toward tech companies like Samsung, Google, and Apple.
History of Patent Trolling in Crypto
In the crypto space, there have already been cases of alleged patent trolling. Recall that the DeFi Education Fund (DEF), a Washington D.C.-based policy research group, moved to cancel a patent owned by True Return Systems (TRS) last year. TRS had sued MakerDAO and Compound Finance for allegedly infringing on its patent, which links off-chain data to a blockchain. DEF called TRS a βpatent trollβ and argued that the patent should never have been issued.
Launching the Blockchain Zone
The launch of the Blockchain Zone aims to prevent such legal challenges from slowing down development and ensure that the blockchain sector remains free from βbaseless patent assertions,β said Kevin Jakel, CEO of Unified Patents. As part of the collaboration, COPA members will receive pass-through protection at no cost, meaning they will not have to face legal threats from NPEs unaided.
The new initiative continues the work COPA has been doing, which includes past efforts to debunk false intellectual property claims within the community. Specifically, COPA brought a case against Dr. Craig Wright, who claimed to be Bitcoinβs anonymous creator, Satoshi Nakamoto. In March 2024, following a lengthy legal battle, UK High Court Judge James Mellor concluded that Wright was not involved in the development of Bitcoin and was not Satoshi.
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