Square is pooling crypto patents through a new nonprofit called the Cryptocurrency Open Patent Alliance, or COPA. Member companies can now defend themselves against patent trolls while keeping foundat
Square is pooling crypto patents through a new nonprofit called the Cryptocurrency Open Patent Alliance, or COPA. Member companies can now defend themselves against patent trolls while keeping foundational blockchain technologies open to the broader community.
Jack Dorsey, CEO of both Square and Twitter, announced the initiative yesterday. In a tweet, he wrote: "Square is putting all of our crypto patents into a new non-profit org we're calling the Crypto Open Patent Alliance, which will maintain a shared patent library to help the crypto community defend against patent aggressors and trolls. Join us! #bitcoin." Square detailed the plan in follow-up tweets.
"Open access to patents covering foundational cryptocurrency technologies is necessary for the community to grow, freely innovate, and build new and better products," Square said.
Patents have become weapons in the crypto sector. Companies hoard early innovations, then sue competitors developing similar technology independently. COPA's website frames the issue this way: "Cryptocurrency technology and its adoption is still at a nascent stage. We believe that cryptocurrency's success depends on the community coming together to build and develop upon existing technologies to innovate, which is not possible when parties tie up foundational technology in patents and litigation."
How fast an industry moves depends on patent dynamics. Right now, companies race to file patents on foundational crypto work, building legal arsenals rather than contributing shared resources. Alibaba filed 470 blockchain patents last year and holds 2,344 total as of April. Tencent filed 718 in 2019. Those filings reveal where corporate strategy has focused.
The entertainment industry tested a similar approach. Damien Riehl and Noah Rubin created a tool capable of generating nearly every possible melody. They released it under a Creative Commons Zero license, letting musicians work without fear of infringement suits.
COPA operates on the same theory: innovation accelerates when patents protect against trolls instead of creating conflict between competitors.
