Decision of the Day: Blockchain Company With Infringement Suit Against Coinbase Ordered to Pay Punitive Damages in Unrelated Case Involving Patents

In a derivative action, the court found that defendant Reggie Middleton, founder of blockchain company Veritaseum, wrongfully caused patents belonging to defendant company to be transferred to and owned by himself personally in breach of his fiduciary duty of loyalty to the company.

Middleton had represented to the companyโ€™s investors that the company had pending patent applications and the investors were led to believe that they would be investing in a company that would own those patents.