Square creates nonprofit to cull patent hoarding in crypto space

Payments company Square this month created a nonprofit called the Cryptocurrency Open Patent Alliance (COPA). Its goal is to promote open-source frameworks that encourage innovation.

Why should we care?
Patent hoarding is a practice that’s not unique to the crypto or fintech industries. Patenting foundational technologies and preventing other entities from using them is seen by Square and others as a barrier to tech evolution in the crypto space. "Locking up foundational cryptocurrency technologies in patents stifles innovation and adoption; and offensive use of patents by bad actors threatens the growth of cryptocurrency technologies,” Square said in a statement. From Square’s perspective, the success of cryptocurrencies depends on collaboration and building on existing technologies, which cannot happen when parties tie up foundational technology in patents and litigation. To become a member of COPA, applicants must be willing to make their patents freely available. The objective will be to develop a shared patent library and guard against “patent aggressors.” COPA will be an independent entity with its own board of directors.