NEW YORK—A number of big banks are now racing to land patents for blockchain technology. Two of the most recent to enter the race are Bank of America and Goldman Sachs, Pymnts.com reported.
The moves, reports indicate, are being made to gain a competitive advantage, since many developers of blockchain-based solutions depend on open-source technology technically owned by someone else.
According to law firm Reed Smith, the number of patents pursued by businesses has just about doubled through November since the beginning of 2016. Failing to grab up those patents, some experts say, could mean trouble ahead, Pymnts.com reported.
“Open-source code — that doesn’t necessarily restrict the ability to patent the underlying innovation,” Patrick Murck, a blockchain legal expert at Cooley LLP, told the Boston Globe. “Anybody who’s investing in the ecosystem, anybody who’s interested in the technology should be worried about this.”
Earlier this year, Verizon Communications filed for its own blockchain patent and Mastercard is doing the same. Mastercard stated that it has been filing patents—more than 30—to protect the blockchain inventions developed by the company, Pymnts.com reported.