Securitize asks court to reject tZERO patent claims

Securitize filed suit Monday in the U.S. District Court for the District of Delaware seeking a declaration that its DS Protocol and Vault Registrar do not infringe two patents held by tZERO. The company filed the complaint after receiving a cease-and-desist letter alleging infringement.

tZERO's notice identified two patents related to self-enforcing security tokens and crypto integration infrastructure. The notice demanded Securitize stop commercializing the products and respond by June 18 or face claims for injunctive relief and monetary damages.

In its complaint, Securitize argues the patents do not cover core elements of its products. The filing says Securitize's implementations lack trade execution and transaction-signing functions described in tZERO's patents.

Securitize asks the court for a declaratory judgment of non-infringement and an injunction barring tZERO from asserting the patents against Securitize. The complaint characterizes tZERO's actions as driven by shareholder pressure to monetize the patents rather than routine enforcement.

In a post on X, Securitize wrote, “tZERO’s allegations are without merit and run counter to the spirit of fair play that defines our industry at its best. We will vigorously defend ourselves against these and any other meritless claims.” The complaint repeats that characterization and seeks court confirmation that Securitize may continue to offer and develop its tokenization products.

The case will proceed in the District of Delaware; the filing does not list a court date. Patent disputes have increased in the tokenization and digital securities sector as companies develop systems for creating, transferring and securing tokenized assets.