At a time when the number of trades is going down, Coinbase Patent Case is being sued for patent infringement related to how it transfers cryptocurrency. Thursday, Veritaseum Capital said that Coinbase broke a patent and filed a complaint about it. Veritaseum is a software company that uses the blockchain to make P2P capital markets.
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In particular, it said that Coinbase’s actions hurt Veritaseum’s right to own its own intellectual property.
What is the real problem with the Coinbase patent case?
Veritaseum said in its case that the cryptocurrency exchange violated its rights by making, hiring, selling, offering for sale, and importing goods and services into the United States. In essence, the company said that Coinbase broke a patent that had been given to Veritaseum’s founder, Reggie Middleton. In December 2021, the founder of the company will get a patent for his invention, which is called “Devices, systems, and methods for facilitating low trust and zero trust value transfers.”
The patent was officially given to Middleton and Mathew Bogosian, who came up with the idea. Also, the patent was officially given to Middleton, and Veritaseum was given the right to use the invention by itself. It also said that anyone who broke Middleton’s patent would have to deal with the law. In its lawsuit, the company said Coinbase knew there was a chance it would break its patent. It said that the defendant knew about the patent, should have known about the patent, or tried to ignore the patent on purpose.
Several patents were broken by the Coinbase Validators.
In the case, the Coinbase Ethereum2 validators were named as the ones who broke the patent claims. One of the things the marketplace did was pay out block rewards to new validators through proof of stake. It also involved sending NFTs from one Coinbase user to another and paying validators from transactions on the Solana network. According to what Veritaseum says, Coinbase “has done things that directly and indirectly violate the patent.”
The company made several claims of patent infringement and asked for at least $350 million in damages because of it. Reuters says that Veritaseum’s lawyers tried to settle with Coinbase, but the exchange was “uncooperative.”
Source: Google Trend