Bitcoin "Elliptic Curve" Infringement? U.S. Patent Company Sues Two Major Mining Firms, Lawyer Warns: If Successful, It Would Be a Disaster for the Industry

Patent firm Malikie Innovations claimed that encryption such as bitcoin elliptic curves infringed patents, so it sued Mara and Core, two major mining companies, and lawyers warned that if the case is won, it will cause a huge disaster for the industry. (Synopsis: Forbes' real intention of Satoshi Ausmoto: Open source nearly 4,000 patents of Bitcoin and force recycling) (Background supplement: Satoshi Ausmoto is tired!) Craig Wright: Gave up on convincing others that I created Bitcoin) The patent war over Bitcoin Core technology is playing out in a U.S. courtroom, with patent firm Malikie Innovations suing bitcoin mining giants Marathon Digital Holdings and Core Scientific after acquiring a large number of BlackBerry patents. Malikie Innovations alleges that the two companies' bitcoin mining operations infringed their patents using methods based on elliptic curve cryptography (ECC). ECC technology is key to generating key pairs and verifying digital signatures in the Bitcoin protocol and is critical to its security. Malikie Innovations acquired about 32,000 "non-core" patents from communications company BlackBerry in 2023, including those originally developed by Certicom. This lawsuit may not only involve huge compensation, but also pose a potential threat to the Bitcoin mining industry and even the overall network security. Mining companies face huge claims, industry fears chain lawsuits Among bitcoin's encryption technology, Elliptic Curve Cryptography (ECC) is mainly used to generate public-private key pairs and digital signature verification transactions, which is one of the core of the entire Bitcoin security mechanism, so if Malikie Innovations claims infringement of rights, then the problem is not only two mining companies. Rather, all individuals who use Bitcoin technology may be found to be in violation of rights. Legal expert Aaron Brogan pointed out that despite the widespread use of ECC technology, individuals are actually unlikely to be the target of legal action, because most of the cryptocurrencies used are anonymous, and mining companies are the target of patent litigation because of their significant financial resources, and if Malikie Innovations wins the case, it can recover up to six years of patent royalties from the defendant. Brogan believes the royalty could be a "huge amount" that could even lead to the bankruptcy of the mining company involved. The ruling is more likely to open the door for Malikie Innovations to sue other bitcoin miners in the United States, triggering a wave of widespread industry lawsuits. Brogan further warned that in a worst-case scenario, large-scale patent litigation could even "undermine the security of the Bitcoin network." However, Niko Demchuk, head of legal at cryptocurrency compliance and forensics firm AMLBot, takes a more cautious view. According to Demchuk, the outcome of the lawsuit will depend on the validity of the specific patent and its coverage, and Malikie's claim may not be valid if the claimed patent has expired or its technology differs from the ECC algorithm actually used in Bitcoin: The outcome depends on the details of the specific patent claimed and the court's interpretation of its scope. This isn't the first IP-related lawsuit against Bitcoin-related technology, and past cases by Craig Wright have also caused waves around the world, Craig Wright has always claimed to be the owner of bitcoin technology, and has applied for up to 114 patents, even claiming the copyright of the Bitcoin white paper, but then Satoshi Ausaki's lawsuit failed miserably, and now Malikie Innovations A new wave of lawsuits over Bitcoin technology patents has been set off. Related reports Legendary big short Jim Chanos shouts "short micro strategy, long bitcoin", arbitrage crazy idea detonates Wall Street debate crypto valuation 5 listed companies that bought bitcoin at a high level: Floating losses of more than $4 billion during the strategy microstrategy period Bitcoin pullback 32% Is "the company that bought BTC as a reserve" still alive? The Future Concerns of the Microstrategy Imitation Tide (Bitcoin "Elliptic Curve" Infringement? U.S. patent company sues two major mining companies, lawyers warn: if you win the lawsuit, it is an industry disaster" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".