- TRS filed the suits in September 2022, seeking payments for damages and the ability to instruct both DeFi platforms on the usage of the patented technology.
- The DEF previously petitioned the US Patent and Trademark Office (USPTO) to cancel the patent registered by TRS in 2018 since the technology has been in use since 2014.
The DeFi Education Fund (DEF) bought a patent from True Return Systems (TRS), which the latter used to sue MakerDAO and Compound Finance for patent infringement. By acquiring the patent from TRS, DEF has brought an end to the suit and promised to insure other DAOs and protocols from being sued due to this specific patent.
TRS filed the suits in September 2022, seeking payments for damages and the ability to instruct both DeFi platforms on the usage of the patented technology. This patent, US10025797B1, is for a “method and system for separating storage and process of a computerized ledger for improved function.” In other words, an oracle-like system for data storage that MakerDAO and Compound use.
DEF mentioned on X, “Today, DEF is excited to share that we have resolved all disputes related to the patent claiming invention of oracle-like technology owned by True Return Systems (TRS).” It added, “This means an end to the lawsuits against MakerDAO and Compound and insurance that similar lawsuits will never be filed.”
TRS’ Patented Technology Was in Use Since 2014, DEF Calls Suits “Patent Troll”
The DEF previously petitioned the US Patent and Trademark Office (USPTO) to cancel the patent registered by TRS in 2018 since the technology has been in use since 2014. In the petition submitted last September, DEF mentioned how IPFS and SIA have used it since 2014 and Storj and Swarm since 2016.
Furthermore, it called TRS’ suits against the platforms a “patent troll,” implying how TRS indulged in filing patent infringement claims without basis. Amanda Tuminelli, DEF’s chief legal officer, explained, “Clearly TRS’s goal was to name defendants who could not answer the complaint so TRS could get a default judgment and then try to enforce that judgment against token holders. And then repeat the process against other projects using similar technology.”
In previous attempts, TRS tried selling the patent as an NFT with an asking price of 2,250 ETH. However, that amount was not met, following which the firm sued MakerDAO and Compound. DEF’s efforts to quash the lawsuits preserve the existence of open, decentralized software for users worldwide.
