How COPA Fights to Protect Blockchain Innovation from Patent Trolls

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Patent Trolls Problem 

The so-called patent trolls have now become a big headache in the tech world. According to Unified Patents, they were responsible for 58% of all patent lawsuits in the U.S. last year and targeted tech companies a whopping 95% of the time. Thereby, such lawsuits slow down innovation and burden companies with legal costs. 

The issue was highlighted by Coinbase’s chief legal officer Paul Grewal. He said that patent trolls make the route to progress difficult in the crypto space. He believes they must be stopped to allow developers to focus on building the crypto economy. 

Recent Examples of Patent Trolls in Crypto 

Several instances of patent trolling have already affected the crypto industry: 

  • DeFi Education Fund (DEF): DEF recently dealt with a patent troll, True Return Systems, which claimed to own a patent for linking off-chain data to a blockchain. True Return filed lawsuits against MakerDAO and Compound Finance for patent infringement. DEF bought the patent as part of a settlement, stopping the lawsuits. 
  • Ethereum Name Service (ENS): ENS is currently fighting a patent held by Unstoppable Domains. Unstoppable claims to have created blockchain technology for determining domains. ENS argues that it was the true innovator of the technology. 

The Role of COPA and Unified Patents 

COPA’s goal is to defend blockchain technology from these patent trolls. By teaming up with Unified Patents, they hope to reduce unnecessary legal risks and allow the crypto industry to grow freely. Kevin Jakel, CEO of Unified Patents, says the partnership is essential to ensure that the crypto sector can thrive without being bogged down by baseless patent claims. 

This effort focuses on the broader crypto industry, including technologies like non-fungible tokens (NFTs), wallets, and smart contracts. 

Why Patent Trolls Hurt Innovation 

  • They sue without actually using the technology. 
  • Lawsuits are costly and time-consuming. 
  • They discourage startups from developing new technology. 

By addressing this issue, COPA and Unified Patents are working to protect innovation in the blockchain world and keep the path clear for new ideas and technologies.