Arent Fox Secures Patent for Reducing Cryptocurrency's Volatility
Arent Fox successfully procured a patent for a provider of a multi-currency blockchain platform that uses a unique electronic currency issuance, circulation, and payment system that avoids the volatility issues associated with other cryptocurrencies.
US Patent No. 9,747,586 describes an electronic currency system that supports a centralized issuance of a cryptocurrency backed by a reserve of tangible assets, such as gold. In this way, the new cryptocurrency can be linked to a stored value of gold, which lowers the volatility to that of gold or other type of tangible asset. In one example described by the patent, the event of a purchase of the cryptocurrency triggers a purchase of a substantiating asset (gold) to grow a backing reserve. Similarly, in the event of a sale of the cryptocurrency that withdraws money from the system, the system automatically withdraws an amount of gold from the reserve for sale.
One of the challenges in prosecuting patents directed to cryptocurrency and, more generally, to systems and methods for doing business is overcoming subject matter eligibility rejections in view of the Supreme Court decision Alice Corp v. CLS Bank. Arent Fox attorneys successfully overcame subject-matter eligibility issues in the instant patent using a mixture of claim drafting strategies and persuasive arguments that were developed from closely monitoring developments in the Federal Circuit case law and USPTO examination guidelines. The patent provides an example of how detailed technical solutions for blockchain and cryptocurrency technology are recognized and rewarded by the US Patent and Trademark Office.
Arent Fox is a market leader in helping clients to navigate the business and legal issues surrounding blockchain technology, particularly in the software industry.