COPA and Unified Patents launch ‘Blockchain Zone’ to combat patent trolls

The Cryptocurrency Open Patent Alliance (COPA) has teamed up with Unified Patents to launch a campaign aimed at combating “patent trolls.” Announced on October 1, this initiative, named the “Blockchain Zone,” seeks to shield blockchain developers and companies from legal threats posed by non-practicing entities (NPEs) and patent trolls that exploit litigation for profit.

Patent trolls are organizations or individuals that hold patents primarily to generate revenue through licensing fees or lawsuits, often without any intent to develop or utilize the technology themselves.

Founded in 2020 by Jack Dorsey under the fintech firm Block (formerly Square), COPA is dedicated to ensuring that essential crypto technologies remain accessible to everyone. Notable members of COPA include MicroStrategy, Worldcoin, Kraken, and Blockstream.

Paul Grewal, Chief Legal Officer at Coinbase and a founding member of COPA, emphasized the importance of addressing patent trolls, referring to them as “barriers in the path of innovation” that stifle progress and creativity. Reports indicate that NPEs accounted for 58% of all patent litigation in the previous year, primarily targeting tech giants like Samsung, Google, and Apple.

Patent Trolls in the Crypto Space

The crypto industry has already faced issues with patent trolling. For instance, the DeFi Education Fund (DEF) attempted to cancel a patent held by True Return Systems (TRS) last year. TRS had sued MakerDAO and Compound Finance, alleging infringement of a patent linking off-chain data to a blockchain. DEF labeled TRS a “patent troll,” arguing that the patent should never have been granted.

The Blockchain Zone aims to prevent such legal challenges from hindering development in the blockchain sector and to protect it from “baseless patent assertions,” as stated by Kevin Jakel, CEO of Unified Patents. Under this collaboration, COPA members will receive pass-through protection at no cost, allowing them to face legal threats from NPEs without the burden of legal fees.

This initiative builds on COPA’s previous efforts to challenge false intellectual property claims, including a notable case against Dr. Craig Wright, who claimed to be the anonymous creator of Bitcoin, Satoshi Nakamoto. In March 2024, after a lengthy legal battle, a UK High Court judge concluded that Wright was not involved in Bitcoin’s creation.