SNEAK PEEK
- DEF acquires a patent from TRS, ending legal battles with MakerDAO and Compound.
- The patent will be released publicly, preventing future lawsuits in the DeFi space.
- DEF’s move aims to protect open-source innovation and support decentralized finance growth.
The DeFi Education Fund (DEF) has successfully acquired a patent from True Return Systems (TRS), effectively ending ongoing lawsuits against MakerDAO and Compound Protocol. This acquisition represents a significant development in the decentralized finance (DeFi) sector, where legal battles over technological patents have challenged innovation and growth.
DEF’s recent acquisition of a patent from TRS immediately dismissed legal actions against MakerDAO and Compound. The patent, granted by the U.S. Patent and Trademark Office in 2018, details a “method and system for separating storage and processing” in computerized ledgers. This method is crucial in enhancing the functionality of decentralized ledger systems, which are foundational to many DeFi operations.
ARS was involved in legal battles against MakerDAO and Compound that began at the end of 2022 based on the argument that the protocols violated their patent. The patent deals with technologies necessary for linking off-chain data to the blockchain, which is a crucial segment of the decentralized finance’s capacity. Due to litigation, TRS alleged that the operations of MakerDAO and Compound breached the said patent.
Additionally, DEF has announced its intention to make the acquired patent publicly available. Amanda Tuminelli, DEF’s chief legal officer, emphasized that this decision aims to prevent the patent from being used in future lawsuits against other projects using similar technology. By dedicating the patent to the public, DEF reinforces its commitment to supporting open-source development within the DeFi community.
We @fund_defi are happy that we can ensure this patent on oracle-like tech will not be used offensively against any other projects.
Open source software benefits all of us. https://t.co/4KisQoW2i2
— Amanda Tuminelli (@amandatums) August 12, 2024
This resolution is vital to maintaining the DeFi sector’s immunity from legal action regarding fundamental technologies. Therefore, the decision of the company to make the patent available to the public is also to promote development of other inventions without the daunting aspect of patent infringement given the fact that the blockchain includes features of decentralization and interaction.
DEF’s acquisition and subsequent public dedication of the patent mark a pivotal moment in the ongoing efforts to balance intellectual property rights with the open-source ideals that drive innovation in the DeFi sector.
