Patent at Crux of MakerDAO Lawsuit Purchased, Ending Crypto Tech Dispute

The DeFi Education Fund (DEF) has successfully resolved its dispute with True Return Systems (TRS) by purchasing a patent for oracle-like technology. This agreement concludes the legal battle that had been ongoing between DEF and TRS, which had filed lawsuits against decentralized finance (DeFi) protocols MakerDAO and Compound in 2022.

Oracles are essential in DeFi, connecting blockchains with external systems like digital asset price feeds. TRS had claimed ownership of a patent related to "a method and system for separating storage and process of a computerized ledger for improved function," and sought to restrict MakerDAO and Compound's use of oracle technology. DEF, along with legal representatives for the protocols, contested these claims, arguing that the lawsuits were overly broad.

DEF Chief Legal Counsel Amanda Tuminelli emphasized the importance of oracle technology in the DeFi space and expressed concern about potential infringements on developers' and users' rights.

The financial details of the settlement were not disclosed, but TRS has agreed to terminate its lawsuits following the patent sale. This purchase not only allows MakerDAO and Compound to continue using the technology but also ensures that other DeFi protocols can access and utilize it.

DEF plans to make the patent publicly available, meaning that all protocols will have the legal right to use the technology without fear of further legal challenges. The advocacy group had previously filed a petition with the U.S. Patent and Trademark Office (USPTO) in late 2023 to invalidate TRS’s patent, but opted for the purchase as a quicker resolution.

Tuminelli highlighted that the decision to purchase the patent was made to expedite the resolution of the disputes and protect the broader DeFi community from potential future legal threats.

source: https://decrypt.co/244392/oracle-patent-purchase-defi-education-fund-makerdao