Lancium and Layer1 Settle — Patents Win, Once Again

In March 2021, Lancium LLC and Layer1 settled litigation for a case wherein Layer1 was accused of infringing Lancium’s patent for power management based on grid status. The patent covers an intelligent system for monitoring cryptocurrency prices to adjust power used for mining. The settlement resulted in Layer1 licensing Lancium’s patents and using Lancium’s existing power management softwares. Layer1, which builds turnkey Bitcoin mining systems, came into the case with zero patents, putting it at a disadvantage with very little to offer if it was indeed found guilty of infringement. Lancium, on the other hand, has a portfolio that includes a family of patents covering the technology that Layer1 is interested in, including a new patent that was granted in May of 2021. The case is another example of how valuable patent assets are, as well as how important it is to get ahead in filing. Most patents in cryptocurrency mining address hardware and/or cooling systems, which means Lancium is in a good position to leverage its grid/market monitoring systems, especially as the environmental impacts of cryptocurrency are an increasing concern. In December 2020, Lancium also partnered with Riot Blockchain for a pilot study on mining productivity. Lancium’s market impact may well continue to increase in the future, once again proving the true value of strategic patenting in emerging tech fields. Keep track of key company portfolios in Cryptocurrency using Patent Forecast®.