Securitize, a tokenization platform known for issuing tokenized securities and real-world assets, filed a complaint in Delaware federal court after tZERO accused it of patent infringement.
The company said in a June 22 post on X that it is seeking a declaratory judgment from the U.S. District Court for the District of Delaware confirming that it doesn't infringe tZERO's patents.
- The move turns tZERO's earlier warning into an active court dispute, though Securitize is the side asking the court to rule first.
Securitize
Securitize said tZERO's claims are "without merit" and said it will fight them in court.
Securitize
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Context
tZERO said on June 15 that it had sent Securitize a cease-and-desist and reservation-of-rights letter after reviewing its intellectual property portfolio.
The company argued the dispute involved Securitize tools, including its DS Protocol and Vault Registrar, which tZERO alleged infringed patents tied to compliance rules for security tokens and crypto integration infrastructure. Those allegations haven't been tested in court.
As tZERO said, its broader portfolio includes 23 patent families and 105 patents worldwide covering regulated tokenized securities and tokenized capital markets infrastructure.
The company also said it was reviewing products from at least six other market participants and expected to send demand letters after finishing that review.
- In 2016, tZERO and Overstock issued what they described as the world's first SEC-registered digital security using tZERO-developed technology.
- In 2018, tZERO issued its own preferred security token after raising $134 million from more than 1,000 investors.