Aug 15, 2020 at 01:05 UTC
According to a recent lawsuit filed in the Western District Court of Texas, data center power management firm Lancium has accused bitcoin mining firm Layer1 of infringing upon its patented technology to adjust power usage in bitcoin mining facilities.
Backed by investors like PayPal Co-founder Peter Theil and the Digital Currency Group, CoinDesk’s parent company, Layer1 currently operates bitcoin mining facilities in West Texas.
- According to Lancium’s filed complaint, Layer1’s “demand-response” model which allows the firm to shut down mining operations and redirect power to the grid during high demand violates the firm’s patent.
- Granted earlier in March this year, Lancium holds a patent on technology to help adjust power consumption at “flexible” data centers that kick into action when there is low demand for power, hence making it cheaper, and shut down when there is a spike.
- According to exhibits attached with Lancium’s filed complaint, the firm tried to alert Layer1 of this possible infringement in May this year but received no response from the mining firm.
- In its filed complaint, Lancium argues it should receive damages commensurate with wilful infringement of the firm’s patent and a permanent injunction should be granted to prevent any further violation by Layer1 or any of its employees.
- Layer1 did not respond to a request for comment on the lawsuit by press time.
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