Blockchain funds firm Rocketfuel Blockchain is suing its co-founder for allegedly misrepresenting patent purposes and defrauding the agency.
In a complaint 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 looking for damages of at the least $5.1 million.
Based on Rocketfuel, Web page transferred patent purposes to the corporate in March 2018, thereby relinquishing his rights to the patents. These patents had been for a number of fee 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 had been being examined by the USA Patent and Trademark Workplace (PTO). Web page and different shareholders offered their shares in Rocketfuel, and he obtained 5 million shares of the newly acquired agency price roughly $45 million.
A 12 months later, Web page resigned from the board. He demanded shareholders of Rocketfuel increase four million euros in capital to develop the expertise described within the patents or pay him 100,000 euros and switch the mental property again to him.
However Rocketfuel alleged the patent purposes had expired, and the corporate may now not revive them. Three of the 5 patents Rocketfuel now owned had been thought-about deserted between 2014 and 2017.
The corporate mentioned Web page admitted the patents expired in June 2019 however mentioned this was because of Rocketfuel’s incapability to lift capital to make use of the expertise. Nevertheless, the corporate mentioned Web page let the patents expire as a result of he did not pay extra submitting charges and didn’t reply to different PTO requests.
Rocketfuel mentioned if it had identified it couldn’t use the patents, it by no means would have gone by means of with the acquisition. They declare Web page assigned the patents to Rocketfuel, and sought shares of inventory in change, regardless of understanding these patents now not had worth for the agency.
No courtroom date has been set for the case. Cointelegraph couldn’t discover contact data for Web page.