BOTS Inc Awarded Bitcoin ATM Patent; Aims to Collect $18 Million In Monthly Royalties From Operators
- A Bitcoin ATM company plans to enforce its patent on crypto-enabled auto teller machines to collect royalties from the other firms using the technology.
- BOTS Inc., a Puerto Rico based startup, aims to collect over $18 million in monthly royalties from firms operating Bitcoin ATMs in the U.S.
In a press release shared early Wednesday, BOTS Inc. announced that its wholly-owned subsidiary, First Bitcoin Capital LLC., is working with a law firm to enforce its “Bitcoin ATM Patent” to start collecting royalties from firms using the technology. The company offers to form a consortium of Bitcoin ATMs to willing individual companies instead of continuing the litigation process.
With the Bitcoin (BTC) market's resurrection to levels last seen in early 2018, BOTS Inc., a blockchain, digital robotics automation, and A.I. company, aims to strengthen its claim on the U.S. Bitcoin ATM market. BOTS Inc., BTZI, acquired First Bitcoin Capital LLC in October this year as a whole subsidiary, including the rights of U.S. Patent No. 9,135,787 – “Bitcoin Kiosk / ATM Device and System Integrating Enrollment Protocol and Method of Using the Same,” shortened to “Bitcoin ATM Patent.”
This patent entails the sale and purchase of Bitcoins and cryptocurrencies using Bitcoin ATMs and kiosks using various payment forms, including bank transfers, credit and debit cards, and even cash. Parts of the I.P. on the patent are crucial for Bitcoin ATMs to operate, seeing firms pay royalties to BOTS Inc.
If the litigation process is successful, manufactures and current operators of Bitcoin ATMs across the U.S. will be forced to pay royalties to the patent holder as agreed. Speaking on the litigation process and royalty payments, BOTS Inc. CEO Paul Rosenberg said,
“Per transaction royalty payments will be negotiated for a several-year term. Some agreements, especially with the manufacturers, could cover previous years and/or a significant number of coming years as those terms have not been finalized yet.”
With over 9,500 Bitcoin ATM across the U.S., according to CoinATMRadar, with roughly 130 to 180 transactions on each machine, the company hopes to collect anywhere between $14-$18 million in monthly royalties.
A Consortium of Bitcoin ATMs?
However, BOTS Inc. is looking for other options away from litigation, including welcoming the competing firm to its consortium. As the world’s first Bitcoin ATM consortium, Bitcoin ATM operators will connect transactions across a network, allowing them to use ATMs that belong to another operator of the network.
Moreover, BOTS Inc. is developing a worldwide Bitcoin ATM network to allow users to buy and sell Bitcoins across the globe irrespective of the firm offering the service.