The DeFi Education Fund (DEF) has successfully acquired a patent owned by True Return Systems (TRS) that served as the foundation for lawsuits targeting decentralized autonomous organizations (DAOs) MakerDAO and Compound Protocol for patent infringement. This strategic move by DEF aims to shield the DeFi ecosystem from similar legal challenges in the future.
The patent in question pertains to an oracle-like system for “separation and linkage of stacked modular data storage and processing.” TRS had filed complaints against MakerDAO and Compound Protocol in October 2022, demanding substantial damages and seeking to prevent the DAOs from utilizing the technology at the core of their operations.
🚨🚨🚨Today, DEF is excited to share that we have resolved all disputes related to the patent claiming invention of oracle-like technology owned by True Return Systems (TRS).
DEF purchased the TRS patent, which is being used to sue MakerDAO and Compound, and dedicated it to the…
— DeFi Education Fund (@fund_defi) August 12, 2024
By purchasing the patent, DEF has effectively resolved the lawsuits against MakerDAO and Compound Protocol, leading to their immediate dismissal. Furthermore, DEF intends to dedicate the patent to the public domain, ensuring it cannot be weaponized against other DeFi projects relying on Oracle technology.
Amanda Tuminelli, DEF’s chief legal officer, emphasized the fund’s commitment to safeguarding the open-source nature of DeFi. She stated, “Offensive patenting is antithetical to the ethos of open-source software development.” DEF’s acquisition of the patent is seen as a significant victory for the DeFi community, as it removes a substantial legal threat and reinforces the principle of open innovation within the space.
