Blockchain funds firm Rocketfuel Blockchain is suing its co-founder for allegedly misrepresenting patent functions and defrauding the agency.
In a criticism filed with the Central District Court docket of California, Rocketfuel claimed its co-founder and former treasurer Joseph Web page hid the truth that patents he transferred to the corporate had expired. The corporate is in search of damages of not less than $5.1 million.
In line with Rocketfuel, Web page transferred patent functions to the corporate in March 2018, thereby relinquishing his rights to the patents. These patents have been for a number of cost processes for Rocketfuel’s blockchain platform, together with cryptocurrency person interface programs.
B4MC Gold Mines acquired Rocketfuel in June 2018. When B4MC took over the corporate, and began doing enterprise as Rocketfuel, Web page mentioned the patents have been being examined by america Patent and Trademark Workplace (PTO). Web page and different shareholders offered their shares in Rocketfuel, and he acquired 5 million shares of the newly acquired agency price roughly $45 million.
A yr later, Web page resigned from the board. He demanded shareholders of Rocketfuel increase 4 million euros in capital to develop the know-how described within the patents or pay him 100,000 euros and switch the mental property again to him.
However Rocketfuel alleged the patent functions had expired, and the corporate might not revive them. Three of the 5 patents Rocketfuel now owned have been thought-about deserted between 2014 and 2017.
The corporate mentioned Web page admitted the patents expired in June 2019 however mentioned this was as a consequence of Rocketfuel’s lack of ability to lift capital to make use of the know-how. Nevertheless, the corporate mentioned Web page let the patents expire as a result of he didn’t pay extra submitting charges and didn’t reply to different PTO requests.
Rocketfuel mentioned if it had recognized it couldn’t use the patents, it by no means would have gone via with the acquisition. They declare Web page assigned the patents to Rocketfuel, and sought shares of inventory in change, regardless of realizing these patents not had worth for the agency.
No court docket date has been set for the case. Cointelegraph couldn’t discover contact info for Web page.