Bonum Certa Men Certa

Blockchain and Bitcoin Patents Help Demonstrate How Software Patents Get Used by Giants to Crush Emerging Technologies ('Threats')

BitcoinSummary: Innovations associated with Bitcoin/Blockchain -- advancements which are largely Free/Open Source software-centric -- are under threat from financial giants that effectively besiege/threaten startups using a barrage of software patents

THE USPTO insists that it makes the US more competitive, but in many cases it actually helps large companies undermine small ones, not foreign ones.



Case of point: see the new article "When a patent-happy industry meets open-source technology" [1, 2]. To quote from the article:

When the financial services industry started paying attention to blockchain technology, many companies, seemingly as a reflex, sought patent protection for their ideas.

It was ironic, since the original bitcoin blockchain was a breakthrough of open-source development, in which software code is made freely available for anyone to use or modify. As the industry has gained a clearer understanding of how distributed-ledger technology could change its business, it's begun to see the merits of such openness in supporting collaborative innovation, and the limitations of the traditional, you-can't-touch-this approach.

Some are even using a hybrid strategy, pursuing patents to secure a competitive advantage – or at least protect themselves from legal challenges – while publishing code and inviting others to improve it by submitting fixes or patching bugs. The situation underscores the cultural differences between the banking and technology fields as the former looks to the latter for help meeting the demands of an increasingly digital world.


IBM's Manny Schecter was interested in this and Benjamin Henrion told him that these conglomerates pursuing patents on Blockchain technologies is "like oil companies patenting everything solar."

This isn't entirely new a revelation. It's an old trick in many industries (absorbing or denying competition that suggests alternative paradigms). Big Banks are essentially attacking Bitcoin, Blockchain etc. using software patents and today we found two more articles about it, "Blockchain patent filings by Goldman, others tip future cost risk" and "Corporate Patents on Blockchain Could Create Legal Problems for Startups". Well, that’s the intention.

"Thankfully, a lot of software patents pertaining to payments and finance are being invalidated these days (thrown our by court), more so than in any other field.""Over the past few months," one of these articles says, "some of the world’s largest financial companies including Goldman Sachs, Bank of America and Mastercard – have been patenting promising Blockchain methodologies. Despite a common perception that Blockchain is Open Source and developers can freely use Sotoshi Nakamoto’s ideas from bitcoin to build new systems, it still could mean costly legal problems for fledgling startups, lawyers and others are saying."

We wrote about this not too long ago in relation to MasterCard. A lot of the above culminated in the publication of "Big Banks Are Stocking Up on Blockchain Patents" (early yesterday in Wall Street media). To quote:

In the headlong rush to revolutionize modern finance, blockchain enthusiasts are overlooking one potentially costly problem: their applications, built on open-source code, may actually belong to someone else.

Recently, some of the biggest names in business, from Goldman Sachs to Bank of America and Mastercard, have quietly patented some of the most promising blockchain technologies for themselves. Through mid-November, the number of patents that companies have obtained or said they’ve applied for has roughly doubled since the start of the year, according to law firm Reed Smith.


Our readers are smart enough to know what's wrong with this picture. Gullible people may try to frame this as a sign of "adoption" and "success", but the large financial firms just want to guard their monopoly/oligopoly, they don't want disruption.

Thankfully, a lot of software patents pertaining to payments and finance are being invalidated these days (thrown out by courts), more so than in any other field (about 90% of the time). That's similar to business methods, too.

Are patent examiners in the US paying any attention at all to what courts have been arguing over and over again?

Recent Techrights' Posts

Slopwatch: The March of Slopfarms, From UbuntuPIT to Linux Journal and to Various Fake Sites Still Promoted by Google News
It's so worrying to see what the Web has become
Links 29/10/2025: CISA, Ukraine, and Amazon Problems
Links for the day
[Teaser] The EPO's Spokesperson, a Cocaine User, Fancies Young Women
How's that for "optics" in the EU and Europe's second-largest institution?
How Will António Campinos Respond to the EPO's 'Cocainegate'?
That's the same thing we saw and still see when the press deals with enablers and partners of Jeffrey Epstein
Join Us Now and Share the News - Part IV: There Cannot be Free Software Without Free Press and Free Information
One day, one can hope, more people will recognise that for Software Freedom we need free press and free thinkers
Join Us Now and Share the News - Part III: Principled Stance Is Never Cheap
Protecting the truth and insisting that the general public is made aware of things that really happened isn't cheap
Join Us Now and Share the News - Part II: Because Scarcity of Accurate Information Breeds Collective Ignorance
we too will strive to share information that's aggressively suppressed
Gemini Links 28/10/2025: More New Arrivals at Geminispace, xkcd on "Document Forgery"
Links for the day
Join Us Now and Share the News - Part I: Defence of the Truth
This year we make a very strong, firm statement for truth, even if that means explaining our work to the top media judge in the country
Links 28/10/2025: Meta and Fentanylware (CheeTok) Age-Restricted Down Under, "Britain Needs China’s Money"
Links for the day
Links 28/10/2025: Mass Layoffs at Amazon and Charter to Cut 1,200 Jobs
Links for the day
The Cocaine Patent Office - Part II: The Person Who Planted Paid-for Fake News for the European Patent Office (EPO) is a Cocaine User, Friend of António Campinos, Now on Record as Having Been Arrested
Background: High-level manager at the European Patent Office caught in public with cocaine, arrested
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, October 27, 2025
IRC logs for Monday, October 27, 2025
Google News Drowning in Slop (and Slopfarms That Hijack About Half the Results)
Google News seems to be drowning in this stuff
Gemini Links 28/10/2025: "How to Maximize Your Positive Impact" and ASCII Art and Artist Attribution
Links for the day
PETA and Activism
Being staff or volunteer in PETA isn't easy
Big Blue, Huge Debt
debt will soar again
Links 27/10/2025: Mass Surveillance Sold as "AI", People Reluctant to Lose Physical Media
Links for the day
Parties and Milestones Again
we've begun putting up about 40 balloons
Techrights' 19th Anniversary: Bronze
Time to go back to preparing for this anniversary
Our Latest European Patent Office (EPO) Series Will Last Several Weeks, Will Ask the EPO Management and the European Union (EU) Very Difficult Questions
If nobody loses a job (or jobs) over this, then the EU basically became no better than Colombia or Nicaragua
Slopwatch: LinuxSecurity, UbuntuPIT, Brian Fagioli, and Google News
We focus on stories that are fake or LLM slop that disguises itself as "news" about Linux
Links 27/10/2025: Wikipedia Vandalism, Bruce Perens Opens up on Childhood
Links for the day
This Site Could Not be Done by LLMs Even If It Wanted to (Because It's Not a Parrot of What Other Sites Say)
LLMs have no knowledge or deep understanding
Microsoft is Disloyal Towards Its Most Loyal Employees
Against its most faithful enablers
19 Years, No Censorship
No factual information is ever going to be removed, more so if it is in the public interest
We Are Not a Conventional Site, That's Why They Hate (or Love) Us
Throughout the week this week we'll be focusing on the EPO
Following the Line of Cocaine All the Way to the Top
Even a million denials and spin-doctoring won't distract from the core issue
The Cocaine Patent Office - Part I: António Campinos Brought Corruption and Nepotism to the EPO, Then Came the Cocaine
High-level manager at the European Patent Office (EPO) caught in public with cocaine, the Office has some answering to do
Purchasing/Possessing Computers Isn't the Same as Controlling Computers
Let's strive to put computers back under the control of their users, no matter who purchased these (usually the users)
Gemini Links 27/10/2025: Alhena 5.4.3 and Fixing Bash
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, October 26, 2025
IRC logs for Sunday, October 26, 2025
Thankfully We've Made Copies of More Interesting Data From statCounter
If statCounter (the Web site or the 'webapp') vanished overnight, we'd still have something left of it
More Silent Layoffs at IBM/Red Hat
when the media counts such layoffs or presents tallies the numbers are very incomplete