As blockchain technology continues to shake up industries, from finance to logistics, it is becoming a target for patent trolls—known entities that purchase patents with no intention of using them to innovate and make money through litigation. But the fight against them is not only good for the blockchain industry itself, it is also essential to ensuring that the nascent technology remains accessible. Find out

Patent trolls often begin their attacks with cease-and-desist letters and demands for licensing fees, or even outright lawsuits—which are notoriously expensive to defend. This puts tremendous pressure on developers, especially in early stages when they may not have the financial muscle to fight back, and can ultimately stifle innovation.

Patent Wars in the Blockchain Space: Who Owns the Future

Furthermore, the time and resources needed to combat a patent war are a significant opportunity cost, diverting attention away from innovation, development, or market penetration. This is particularly concerning in fast-moving sectors such as tech, where delay can lead to missed business opportunities.

In some cases, patent trolls can actually block access to the patented technology altogether. For instance, the recent lawsuits against DeFi protocols MakerDAO (now Sky) and Compound Finance highlighted that these kinds of legal disputes can stall out the adoption of new solutions in the DeFi industry. However, the COPA initiative—along with initiatives such as Unified Patents—is a welcome show of collective force that should help put an end to this kind of abuse. This is good for the blockchain community, and ultimately good for the world that will benefit from their innovations.