Securitize responds to tZERO and disputes claims about tokenization.
- Asset tokenization faces legal dispute over patents.
- Securitize denies violation in crypto products.
- tZERO is pushing for rights over digital infrastructure.
Securitize, a company focused on tokenizing real-world assets, has initiated legal action against tZERO in a US federal court. The goal is to obtain a ruling confirming that its products do not infringe on patents registered by its rival, following formal accusations of infringement involving solutions related to the cryptocurrency market.
The lawsuit was filed in the Delaware District Court and accuses tZERO of pursuing "meritless patent claims." According to Securitize, the competitor's initiative represents an attempt to pressure successful companies in the sector, rather than competing directly in the tokenization market.
The dispute began after tZERO sent an extrajudicial notification, alleging that the DS Protocol and Vault Registrar products were infringing two patents related to self-executing security tokens and cryptocurrency integration systems. The company also allegedly demanded that the offering of these solutions be discontinued, and set a deadline for a response under threat of legal action.
In the lawsuit, Securitize refutes the arguments by stating that its products do not include essential elements covered by the aforementioned patents. Among the points highlighted are the absence of functionalities such as direct execution of trades and transaction signing mechanisms, considered central to tZERO's claims.
The company also argues that the competitor's legal action reflects internal pressures, especially from shareholders interested in monetizing the patent portfolio. According to Securitize, this type of approach seeks to generate revenue through legal disputes, rather than innovation and growth in the crypto sector.
In a statement released on the social network X, the company reinforced its position by stating: “tZERO’s allegations are unfounded and contradict the spirit of fair play that best defines our sector.” Securitize further added: “We will vigorously defend our position against these and any other baseless allegations.”
With this action, the company is requesting a formal declaration of non-infringement, as well as an injunction preventing tZERO from continuing to use these patents as a basis for future accusations against its products.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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