Crypto non-profit group, the Cryptocurrency Open Patent Alliance (COPA), and the patent-oriented entity, Unified Patents, have allied to kickstart a campaign against “patent trolls” in the digital asset arena. The two entities unveiled the campaign to protect developers from activities of non-practicing entities (NPE) or patent trolls.
The COPA-Unified Patents alliance aims to ensure that blockchain technologies are protected from unwarranted and expensive infiltrations by non-practicing entities trying to capitalize on the high cost of patent litigation. The agreement between the two entities will guarantee that COPA members receive pass-through protection at no cost.
The COPA-Unified Patents alliance yields Blockchain Zone
The two partners launched the Blockchain Zone, highlighting how developers in the crypto hemisphere are affected by NPEs asserting bad patents. In a blog post published on October 1st, COPA highlighted that the Blockchain Zone campaign will cover the different elements of blockchain ecosystems, including blockchain addresses, consensus mechanisms, peer-to-peer networks, non-fungible tokens, and smart contracts.
Paul Grewal, the chief legal officer at Coinbase and a member of COPA, said that patent trolls hinder innovation by obscuring creativity, hence the need to stop them.
“Patent trolls are barriers in the path of innovation; they hinder the progress of technology and stifle the spirit of creativity, particularly in the fast-evolving world of cryptocurrency.”
Paul Grewal
Patent trolls are organizations that hold and license patents to turn a profit or sue other entities who use the patents without permission. In normal circumstances, patents don’t actively use them.
On January 8th, Unified Patents issued a comprehensive patent dispute report highlighting 2023’s patent event. According to the report, these entities accounted for 58% of all patent cases in the United States in 2023. The report also concluded that these entities targeted tech companies 95% of the time.
Patent cases rise in the crypto ecosystem
Patent trolls are common in the tech industry but have also risen in the crypto industry. In mid-September, the DeFi Education Fund petitioned the United States Patent and Trademark Office (USPTO), intending to stop ‘patent trolls’ targeting DeFi protocols. The advocacy firm filed a 90-page petition to the Patent Trial and Appeal Board to cancel a patent owned by True Return Systems.
DEF legal chief Amanda Tuminelli said True Return Systems tried to auction its patent as a non-fungible token (NFT) but found no buyer. True Return System later sued Compound Finance and Sky (previously MakerDAO) DeFi protocols in October 2022. Finally, the DeFi Education Fund purchased the patent from True Return Systems.
A similar instance occurred in May this year. ENS Domains announced that Unstoppable Domains (US) had acquired a patent for a tech that ENS Labs developed. ENS petitioned the USPTO to fight the validity of that patent and ensure the technology remains a collaborative space for all developers. DeFi Education Fund supported ENS. The entity said that it aligns with ENS in protecting open-source protocols.
