The move encompasses the acquisition of nearly 1,000 patents issued worldwide across 680 patent families, putting Circle as one of the largest holders of blockchain patents in the U.S. and internationally. The company qualified IP as critical for expanding onchain infrastructure adoption.
Key Takeaways
By purchasing 70% of IBM’s blockchain portfolio, Circle became the top US holder of these patents.The 1,000-patent acquisition bolsters Circle’s infrastructure for internet financial systems like USDC.Though deal terms are undisclosed, the firms are exploring new commercial ventures and future acquisitions.Circle is making significant investments in intellectual property to support the expansion of its digital asset business.
The digital financial services company announced on Monday a deal that includes the acquisition of “fundamental assets” from the blockchain patent portfolio of International Business Machines Corporation (IBM), a leader in the decentralized Intellectual Property (IP) space.
Earlier reports suggest that IBM held nearly 1,450 blockchain-related patents, with over 500 filings in 2018 and 2019, topping the patent recipient ranks for 2019. Filings decreased in the following years as the company adopted a policy of focusing on high-quality, monetizable patents.
This means the 1,000 patent purchase represents a takeover of nearly 70% of IBM’s blockchain patent business.
“Intellectual property is critical to advancing our mission and expanding adoption of onchain infrastructure. IBM has been a pioneer in technological innovation, and this acquisition expands Circle’s ability to advance the infrastructure that powers global, internet-native finance,” Sarah Wilson, General Counsel and Corporate Secretary at Circle, declared.
