Crypto exchange Coinbase finds itself in legal warm water after being accused by blockchain-based software firm Veritaseum Capital of infringing on the patent associated with its blockchain technology — and it is now seeking $350 million in damages.
According to some suit filed on Thursday by U . s . States law practice Brundidge & Stanger within the U.S. District Court in Delaware, Veritaseum alleges that Coinbase infringed on its cryptocurrency payment transfer technology patent, referred to as “566 Patent.”
Veritaseum stated the patent involves “novel devices, systems and techniques,” which enable parties to “enforce value transfer agreements” with “little or no trust” in one another, alleging Coinbase used this for a lot of of their blockchain infrastructure services:
“Defendant’s infringing activities include but aren’t restricted to its website […] Coinbase Android mobile wallet […] iOS mobile wallet […] its Coinbase Cloud, Coinbase Commerce APIs, Query and Transact, Participate, Delegate and Validator software, Coinbase Pay, Coinbase Wallet and Coinbase Operated Public Validators.”
What the law states firm also described the patent is relevant with proof-of-stake (PoS) and proof-of-work (Bang) blockchains, that could let the change in cryptocurrency payments, buying and selling and staking services on chains based on individuals consensus mechanisms.
Furthering my many warnings from the perils of poor research, our suit includes violation of patent claims which cover PoS & Bang Ethereum, change in NFTs & Bitcoin. It was public info since 2015, I have been tweeting openly for several months. It ought to surprise nobody! https://t.co/MjuJSvYBrc
— Reggie Middleton DeFi Patent US11196566, JP6813477 (@ReggieMiddleton) September 22, 2022
Veritaseum justified the $350 million figure by quarrelling that Coinbase had “gained substantial profits due to its infringement” which Veritaseum Capital “sustained damages like a direct and proximate result.”
The attorneys also noted that Veritaseum had formerly sent instructions to Coinbase in This summer warning it of their alleged violation, adding:
“Defendant had prior understanding, must have known, or at best been willfully blind from the ‘566 Patent. Defendant continues to be on notice from the ‘566 Patent a minimum of as soon as This summer 3, 2022, otherwise earlier using their company sources or parties.”
In This summer, Vertiaseum’s “Coinbase: Forensic Analysis & Deep Dive” report recommended that there might be other “centralized and decentralized digital asset exchanges” that employ “unlicensed patented IP” from Veritaseum additionally to Coinbase.
Related: Coinbase hit with 2 fresh lawsuits among SEC probe
Based on the court document, Patent 566 was awarded to Vertiaseum founder Reginald ‘Reggie’ Middleton and co-inventor Mathew Bogosian through the U.S. Patent and Trademark Office on 12 ,. 7, 2021. However, Vertiaseum didn’t mention how lengthy Coinbase have been allegedly using Patent 566 for.
Veritaseum Capital also requested an effort by jury within the Delaware-based court since it’s preferred way to resolve the dispute.
Cointelegraph arrived at to Coinbase for comment but didn’t have an immediate response when of publication.
