Crypto Mining Under Legal Siege: Lancium Takes on U.S. Data Mining Group over Patent Infringement

Lancium LLC, a patent owner, has recently filed a lawsuit against U.S. Data Mining Group (USBTC) for alleged patent infringement. This lawsuit follows a trend of increased scrutiny towards cryptocurrency mining operations, according to the Mondaq.

Lancium asserts that USBTC has been using its patented systems and methods for Bitcoin and other cryptocurrency mining operations. The patents in question relate to data centers that can adjust their power usage based on the economic viability of energy availability. Lancium alleges that USBTC’s data centers, which claim to adjust their operations based on renewable energy supply, infringe upon these patents.

Another company, OBM Inc., has also taken legal action against Lancium, seeking a declaratory judgment that it does not infringe one of the patents asserted by Lancium. OBM alleges that Lancium’s patent attempts to cover an energy curtailment program established by the Electric Reliability Council of Texas (ERCOT), and that Lancium has been asserting infringement against crypto miners and software companies that qualify under this program.

As renewable energy increases and power consumption associated with crypto mining continues to be a concern, such legal battles in the crypto space are expected to rise. The outcomes of these lawsuits could have significant implications for the industry.