Coinbase has filed a lawsuit against Dynapass Inc. and Dynapass IP Holdings, challenging what it considers dubious patent infringement claims.
Dispute Overview
The dispute centers on U.S. Patent No. 6,993,658, which covers the use of personal devices for user authentication. Dynapass claims Coinbase violated this patent by requiring two-factor authentication (2FA) for its users.
Coinbase's Response
Coinbase responded on August 1, firmly rejecting the accusation and presenting evidence to support its case. The company noted that the patent had expired in March 2020 and that the U.S. Patent and Trademark Office had found one of its key claims unpatentable in 2024.
Industry Message
Coinbase's stance is not only about the lawsuit; it aims to send a message to the wider tech and crypto sectors against patent trolls that leverage infringement claims for settlements.
The dispute between Coinbase and Dynapass highlights broader issues in the industry related to patent monetization and the defense against questionable claims.
