The DeFi Education Fund Fights Against Patent Infringement Lawsuits
The DeFi Education Fund, an advocacy group based in Washington D.C., is taking action to defend the cryptocurrency industry’s use of open-source software by filing a petition with the U.S. Patent and Trademark Office. This move comes after Connecticut-based technology company True Return Systems LLC sued Compound Protocol and MakerDAO for alleged patent infringement. True Return claims that both decentralized autonomous organizations knew about and infringed on their patent, which was issued in 2018 and relates to bringing off-chain data on-chain using oracles.
The DeFi Education Fund argues that True Return’s patent should never have been issued since it wasn’t a new invention. They point to a similar Nasdaq patent that was filed over a year before True Return’s patent. The DeFi organization believes that patents go against the open-source ethos and hinder innovation.
What Happens Next?
Due to the nature of decentralized autonomous organizations (DAOs), where there is no single controlling entity, no one showed up in court to defend against the complaint. This allowed True Return Systems to obtain a default judgment quickly. MakerDAO is now represented by Perkins Coie law firm to fight the default judgment and is seeking more time. Compound Labs is also seeking to intervene in the case with the representation of Morrison Cohen LLP. True Return Systems did not provide any comments regarding the situation.
Hot Take: Defending Open-Source Innovation in the Crypto Industry
The DeFi Education Fund’s fight against patent infringement lawsuits is crucial in protecting the crypto industry’s ability to utilize open-source software. By challenging the validity of True Return’s patent and highlighting the existence of prior art, the DeFi organization aims to maintain the spirit of collaboration and innovation that defines the crypto space. Patents can stifle progress and hinder the development of new technologies. It is essential to safeguard the principles of open-source ethos that allow for continuous improvement and the sharing of knowledge. The outcome of this case will have significant implications for the future of open-source software in the crypto industry.
By
By
By
By