The Cryptocurrency Open Patent Alliance (COPA) and Unified Patents have joined forces to combat “patent trolls” targeting the blockchain and cryptocurrency industries. On October 1, COPA announced the launch of the “Blockchain Zone,” a campaign specifically designed to challenge patents controlled by non-practicing entities (NPEs). These patents cover various blockchain technologies, including non-fungible tokens (NFTs), wallets, and smart contracts.
NPEs, often referred to as patent trolls, typically hold patents with no intention of using them but instead seek to profit through licensing fees or lawsuits. Their strategy is to leverage the high costs of legal battles to force settlements from companies and developers using blockchain technologies. COPA and Unified Patents are determined to shield the crypto sector from these legal challenges, which they describe as “unwarranted and costly.”
In the broader tech industry, patent trolls have had a significant impact. Last year alone, NPEs accounted for 58% of all patent litigation in the United States, with 95% of their targets being tech companies. These lawsuits are seen as major obstacles to innovation. Paul Grewal, Coinbase’s Chief Legal Officer, emphasized that “patent trolls are barriers in the path of innovation. They must be stopped so that the community can continue to do the important business of building the crypto-economy.”
The partnership between COPA and Unified Patents aims to ensure that blockchain and crypto developers can focus on innovation without the looming threat of baseless patent assertions. Kevin Jakel, CEO of Unified Patents, noted that the collaboration will help prevent the crypto sector from being hindered by the same legal tactics that have plagued other industries.
