Malikie Innovations has filed a lawsuit against Marathon Digital and Core Scientific, two major Bitcoin mining companies, for using Elliptic Curve Cryptography, or ECC, used by the Bitcoin blockchain. The firm claims ownership of the ECC.
There are many cases that have been brought against Marathon Digital Holdings The following are some examples of how to get started: Core Scientific Follow Malikie Innovations acquisition The 32,000 “non-core” BlackBerry’s patents, a former manufacturer of phones and telecommunications, will be available in 2023.
“This case centers on ground-breaking innovations in elliptic curve cryptography […] that years later were recognized and selected by the designers of Bitcoin,” The filings are clear.
According to the suit, defendants have used ECC cryptographic methods protected by Malikie’s patents as a support for their Bitcoin.BTCMining operations.
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Are Bitcoin users in danger?
Aaron Brogan of Brogan Law told Cointelegraph he believes that even if patents were found valid, it would be unlikely for most Bitcoiners to face such lawsuits.
“Pursuing individuals is trickier because they are often ‘judgment-proof,’ which is lawyer jargon for broke.”
A lawsuit is more appropriate for wealthy people, such as miners. Brogan said “these entities will always tend to attract lawsuits because they have money, and the patent bar can try to take it from them.”
The plaintiffs will have the right to claim up to six full years’ worth of royalties if they win. It is difficult to estimate the amount. These cases are often followed by a second trial. “but you can reasonably assume it would be a large sum, and it might cause these defendants to enter bankruptcy,” Brogan added
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Large-scale consequences
Brogan added that Malikie could use the precedent set by the winning of the case to pursue cases against other US miners. It could also have devastating consequences for Bitcoin.
“If they chose to pursue that strategy, it might undermine the security of the Bitcoin network,” “He said”
Brogan said that Malikies was more likely than not to seek a payment until the patents expired, and would rather do this, as opposed to destroying the entire cryptocurrency industry. Niko Demchuk told Cointelegraph this was not likely:
“Malikie’s claim appears not so strong if the asserted patents are expired or cover techniques that predate Bitcoin’s ECC implementation. Even if some patents remain active, their scope is likely limited to specific implementation details, not the core ECC algorithms used in Bitcoin,” Demchuk said. Nevertheless, he said, “nothing is for certain”.
“However, the outcome depends on the details of specific patents asserted and the court’s interpretation of their scope.”
The lawsuit targets Bitcoin for the second time. Bitcoin.org was able and a reupload a copy of the Bitcoin white paper little over a year ago after it was taken down Craig Wright failed in his court case to prove that he was Satoshi Nakamoto, the pseudonymous inventor of the protocol.
Wright is claiming ownership over key components of Bitcoin technology. Wright had been working on Bitcoin for two years prior to 2019. filed 114 blockchain-related patents.
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Source: cointelegraph.com
