Being sued for patent violation over crypto transfer technology.
In a case filed on Thursday, Veritaseum Capital accused Coinbase of patent violation.
Veritaseum is a software company that creates blockchain-based peer-to-peer finance markets. It claimed that Coinbase's actions violated Veritaseum's intellectual property rights.
Coinbase Patent Case – What’s The Issue?
Veritaseum claimed in the lawsuit that the crypto exchange was violating the rights by creating, using, selling, proposing to sell, and importing items and services into the United States. Essentially, the company accused Coinbase of violating a patent granted to Veritaseum founder Reggie Middleton. The founder received the patent 'Devices, systems, and methods for facilitating low trust and zero trust value transfers' in December 2021.
The inventors — Middleton and Mathew Bogosian were legally granted the patent. Furthermore, the patent was formally and legally assigned to Middleton, who thereafter exclusively licensed Veritaseum. Middleton also has the right to sue other parties for patent violation, according to the statement. xrp price in its complaint, the company accused Coinbase of possibly violating the patent with full knowledge.
Coinbase Validators Violate Patent Claims
The complaint stated that the Coinbase Ethereum2 validators violate the patent's claims. The exchange offered products and services like the payment of block rewards to new validators via proof of stake. It also included the payment of validators from Solana network transactions and the transfer of NFTs from one party to another via the Coinbase platform. Veritaseum claimed that Coinbase engaged in actions that directly and indirectly violated the patent.
The company requested at least $350 million in damages. This also cited multiple instances of patent infringement. According to a local media outlet, when Veritaseum's representatives attempted to settle out of court, Coinbase was 'uncooperative.'
Read also: XRP Price Breaks Out Of A 528-Day Downtrend; Will the Price Continue to Climb?
