Coinbase is facing legal issues after being accused by Veritaseum Capital of infringing on a patent relating to its blockchain technology.
According to the lawsuit filed by United States law firm Brundidge & Stanger in the U.S. District Court in Delaware, Veritaseum alleges that Coinbase infringed on its cryptocurrency payment transfer technology patent, known as the “566 Patent.”
Veritaseum said the patent revolves around “novel devices, systems and methods,” which enable parties to “enforce value transfer agreements” with “little or no trust” in each other, alleging Coinbase used this for many of its blockchain infrastructure services.
The law firm also explained that the patent is applicable with proof-of-stake and proof-of-work blockchains, which could enable the transfer of cryptocurrency payments, trading and staking services on chains supported by those consensus mechanisms.
Veritaseum justified the $350 million figure by arguing that Coinbase had gained substantial profits by virtue of its infringement and that Veritaseum Capital sustained damages as a direct and proximate result. The attorneys also noted that Veritaseum had previously sent a letter to Coinbase in July warning it of its alleged infringement.
