Bitcoin Miners Sued Over ECC Patents by BlackBerry Patent Holder Malikie Innovations
The Bitcoin ECC patent lawsuit has put major mining companies like Marathon Digital and Core Scientific in legal jeopardy. Malikie Innovations, the patent holder, claims they’re violating intellectual property tied to Bitcoin’s elliptic curve cryptography (ECC).
According to court filings, Malikie argues that ECC—used to secure the Bitcoin blockchain—relies on patented technology. The company claims that these mining firms are using ECC without a license to support their operations.
Bitcoin ECC Patent Lawsuit: Will It Affect Users?
This legal action targets corporations, not individuals. Aaron Brogan, attorney and founder of Brogan Law, told Cointelegraph that individuals likely won’t be sued. Most users don’t have the assets that make lawsuits worthwhile.
Miners, however, present more valuable targets. Public companies like Marathon and Core Scientific have deep pockets. That makes them attractive for legal action.
“If the court sides with Malikie, the firm could claim up to six years of unpaid royalties,” Brogan said. “That figure could be large enough to push a miner into bankruptcy.”
How the Bitcoin ECC Patent Lawsuit Could Impact Mining
A win for Malikie could create a dangerous legal precedent. It might allow the firm to go after more mining companies in the U.S. Brogan warned that this could shake the entire industry and even harm Bitcoin’s network stability.
However, not all experts agree. Niko Demchuk, legal head at AMLBot, said the outcome depends on the scope and validity of the patents.
“Even if some patents remain valid, they may cover only minor details,” Demchuk said. “They probably don’t apply to the core ECC algorithms used by Bitcoin.”
Crypto Mining and the Role of ASIC Hardware
Despite these lawsuits, crypto mining remains profitable. Modern miners rely on ASIC hardware to stay competitive and maximize returns. These specialized machines outperform general-purpose GPUs and CPUs. For serious miners, investing in ASIC hardware is a strategic move toward long-term success.
Historical Context: IP Lawsuits and Bitcoin
This isn’t Bitcoin’s first legal battle over intellectual property. In 2021, bitcoin.org restored the Bitcoin whitepaper. It had been removed due to a failed legal claim by Craig Wright, who says he is Satoshi Nakamoto. Wright filed over 100 blockchain-related patents, but many remain legally unproven.
As Malikie’s lawsuit unfolds, the crypto world is watching. The final outcome will depend on the strength of the patents and how courts interpret their scope.
