The blockchain and robotics company Puerto Rico-based Bots Inc has announced that it will be reviewing its options with “a major law firm” to initiate legal disputes against companies operating Bitcoin ATMs in the United States..
Two weeks ago, The company has acquired a patent for the protocols that support the operation of Bitcoin ATMs that it believes are eligible to receive millions in monthly royalties.
Paul Rosenberg, CEO of Bots, is the intellectual property owner of the technology he claims is vital to the operation of Bitcoin ATM networks. receives royalties “per transaction” from Bitcoin ATM manufacturers::
“The license fees per transaction are negotiated over a period of several years. Some agreements, particularly with manufacturers, could cover previous years and / or a significant number of years. “
With more than 9,400 Bitcoin ATMs installed in the US, which are estimated to process between 130 and 180 transactions per month, Bots believes its patent could generate royalties between $ 14 million and $ 18 million per month. It’s unknown if that number is an area to open negotiations or if the technology is as important as the company claims.
Bots acquired the rights to US Patent No. 9,135,787 B1 “Bitcoin ATM / Kiosk Device and Integrating Registration Protocol and System for Use” on October 29 through its subsidiary First Bitcoin Capital LLC. The patent was originally filed in 2014.
First Bitcoin Capital itself acquired the patent in July 2019 and launched a previously unsuccessful campaign to secure copyright of up to $ 50 million by 2024. Bots began acquiring First Bitcoin Capital’s crypto assets and related technologies from July this year, and it appears that they have doubled with the patent fee campaign..
Bots hopes to “reach an amicable settlement free of litigation” with US ATM operators.and stated that it will “offer these operators the opportunity to join a consortium of Bitcoin ATMs”.
Bots claims to be in the process of building a “global network of Bitcoin ATMs”. is intended to enable interoperability between Bitcoin ATMs regardless of the company that operates the machine.
The crypto community has condemned the use of patents to restrict access to technology in the past. US-based financial services company Square announced in September that it would form a consortium to combat patent control in the fields of cryptocurrency and blockchain.
Square’s “Crypto Open Patent Alliance” will consolidate the blockchain patents of all of its members in a common library to “help the crypto community defend itself against patent attackers and trolls”.