Arent Fox Secures Patent for Crypto-Asset Recovery Using Blockchain Technology

Arent Fox
Contact

Arent Fox

Arent Fox has procured for Bloomio, a fintech pioneer and provider of a blockchain-based investment platform, a U.S. patent covering a new technology for crypto-asset recovery.
 

There has been a tremendous increase in blockchain technology innovation and corresponding patent filings in the U.S. and worldwide. Bloomio, a Swiss fintech pioneer, has developed a blockchain-based investment platform that connects investors and startups and raises capital using an equity tokenization process, by which investors get crypto-assets (such as crypto-coins/tokens) derived from the equity in startups. Individual crypto-asset owners typically keep their crypto-assets and conduct crypto-transactions via cryptocurrency wallets, which can be accessed using the owner’s private encryption key. If that key is lost or stolen by a cybercriminal, the wallet and all crypto-assets within may no longer be accessible to the owner.

Bloomio’s U.S. Patent No. 10,790,976 addresses this security problem by providing a multi-signature crypto-wallet and a key recovery mechanism. When an owner requests recovery of his private encryption key, Bloomio’s system generates a blockchain transaction data structure that includes a script for replacing the owner’s personal private encryption key with a replacement key. The system then generates digital signatures based on the data structure using other private encryption keys associated with the multi-signature wallet, namely, a key of the crypto-service provider and a key of a key escrow organization. The blockchain transaction data structure, along with the generated digital signatures, are sent to the blockchain network for validation, subsequently enabling the owner to access their crypto-wallet using the replacement key.

The main challenge of prosecuting fintech patents is overcoming the subject matter eligibility rejections under 35 USC 101 in view of the Supreme Court decision Alice Corp v. CLS Bank, which restricts patentability of certain business methods. This challenge can be even greater if your patent application is assigned to the USPTO art units 3620 or 3680, which examine business method patents and are notorious for their prosecution difficulty. Patent grant rates for these art units are three times lower than the USPTO’s overall grant rate of 70%. Knowing these challenges in advance, Arent Fox patent attorneys carefully drafted Bloomio’s patent specification and claims to emphasis the invention’s technical aspects and improvements. As a result, Bloomio’s patent application was assigned to art unit 2436, which examines cryptography and cybersecurity technologies and has grant rate of 76%.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Arent Fox | Attorney Advertising

Written by:

Arent Fox
Contact
more
less

Arent Fox on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.