Coinbase becomes a founding member of Square’s patent pool

Financial firm Square’s Cryptocurrency Open Patent Alliance (COPA) recently selected Coinbase as a critical participant. Square introduced the group in September as a way to avoid patent flooding, an issue known to limit technological advancement.

Coinbase’s Senior Attorney and COPA Board Member, Brittany Cuthbert said in an alliance public statement Friday:

“As the crypto economy continues to grow, we believe it is important to strengthen all projects that are working towards an open financial system. […] We look forward to working with COPA members to create a fundamental patent shield for our industry. “

With a duration of 20 years, Patents essentially claim innovations that are considered patented and prevent competitors from making similar products or services or from using certain technologies. Although open source technology is a common topic in the crypto and blockchain industries, Various companies have registered patents for certain advances in space, including and Samsung.

Coinbase becomes a founding member of Square’s patent pool
Coinbase becomes a founding member of Square’s patent pool

The statement further stated:

“COPA believes that the success of cryptocurrency depends on the community coming together to build and develop existing technology for innovation. This cannot be done when parties combine critical technology in patents and litigation.”

In COPA’s view, patents are common around the world, although they can cross borders and cause problems. “While patents can sometimes be useful for defense purposes, the offensive and abuse of patents threatens the growth and adoption of new technologies such as cryptocurrencies.” The statement is. “There is concern that the ‘patent freezing’ of major cryptocurrency technologies by a few will stifle innovation and prevent mass adoption.”

About 12 years ago Bitcoin (BTC) creator Satoshi Nakamoto published his now famous white paper. The revolution that followed was likely made possible in part thanks to the open source foundations of the technology described.

“COPA strives to make basic cryptocurrency technology freely available to everyone and to tackle the patent lock problem with a dual approach.” the statement says.

COPA currently has 18 members: Square, Coinbase, Blockstream, Kraken and 14 others. Members adhere to a code that includes “using their cryptocurrency patents against anyone for defensive reasons only”.

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