Self-proclaimed Creator Of Bitcoin Can Proceed With Claim That Bitcoin Branch Networks Breach His Intellectual Property Rights

• Jurisdiction: United States,Federal
• Published date: 27 February 2023
• Subject Matter: Technology, Fin Tech
• Law Firm: Herbert Smith Freehills
• Author: Mr Chris Bushell, Ajay Malhotra, Andrew Moir, Philip Lis, Charlie Morgan, Rafael Lawrence and Dan Huang
• topic: Intellectual Property,Copyright law,Civil Procedure

Dr Craig Wright claims to be the inventor of Bitcoin and to have authored the Bitcoin White Paper in 2008, created the Bitcoin File Format and mined the inaugural block in the Bitcoin Blockchain - the 'Genesis Block'. Despite the Bitcoin White Paper having promoted de-centralisation, Dr Wright is now seeking to prevent others from using his alleged intellectual property.

A recent decision of the English High Court, Wright v BTC Core [2023] EWHC 222 (Ch), means that Dr Wright can continue his claims in relation to his alleged database rights over the Bitcoin blockchain and copyright in the Bitcoin White Paper and can serve proceedings on the defendants out of the jurisdiction. The court concluded that - assuming the facts are as alleged by Dr Wright - those two claims are arguable. However, it dismissed a claim for copyright in the Bitcoin File Format as unarguable.

It remains to be seen what the outcome of this case will be (including whether this decision will be appealed to the Court of Appeal) and what implications (if any) it will have for the continued operation of the Bitcoin branch networks, BTC and BCH.

In another claim brought by a company of Dr Wright's, Tulip Trading Ltd v van der Laan [2023] EWCA Civ 83, the Court of Appeal recently overturned a decision of the High Court...