Real-world asset tokenization platform Securitize has filed suit against tZERO, asking a federal court to declare that it doesn't infringe on patents after receiving patent infringement allegations from the digital securities infrastructure firm.
In a complaint filed on Monday in the U.S. District Court for the District of Delaware, Securitize accused tZERO of pursuing "meritless patent claims" and said the company was out to "target those that have had success."
The lawsuit comes after tZERO disclosed that it had sent a cease-and-desist letter accusing Securitize's DS Protocol and Vault Registrar products of infringing on two patents involving self-enforcing security tokens and crypto integration infrastructure.
According to Securitize's complaint, tZERO demanded that Securitize cease commercializing the products and respond by a deadline of June 18, or it would seek "injunctive relief and monetary damages."
The tokenization firm argued that the products in question lack key elements covered by tZERO's patents, including trade execution and transaction-signing functions.
