DeFi Protocol Curve Proposes Enforcing IP Rights against Infringers Including Saddle Finance
DEX Curve, ranking second with about $10.6 billion in TVL, wants to “set an important precedent in DAO’s and DeFi that decentralization does not mean that VC’s get to steal from communities.”
A new proposal called “Enforce Curve’s IP Rights” on DEX Curve’s governance forum asks the community if they should assert their IP rights against infringers.
While a decentralized protocol, Curve’s code bears the license stating, “no license, right of reproduction or distribution or other right with respect thereto is granted or implied.”
Posted on Wednesday, so far, the proposal has received 38 votes, with 76% in favor of enforcing IP rights. The proposal reads,
“Contrary to popular belief, Curve has valid and enforceable IP rights in its software code. Pursuant to the LICENSE 33, Curve can and should protect its position in the marketplace with enforcement of those IP rights. Profits from such enforcement should benefit veCRV.”
The popular multi-chain protocol ranks second with about $10.6 billion of total value locked (TVL) in it. With hundreds of millions in daily volume, it even rivals the publicly traded centralized crypto exchanges.
And just like CEXs protect their IP on behalf of their shareholders, Curve wants to do the same through its DAO organization.
“The value of Curve’s IP is not just in keeping out competition, but also in protecting Curve’s ability to recruit talent and bug hunters.”
Curve specifically pointed out Saddle Finance which it claims is copying Curve code, which itself has IP rights in its code. It noted that Saddle is backed by at least nine venture capitalists, with three of its main public faces located in the USA.
“I propose Curve engage competent counsel both in the USA and (to the extent Saddle or other infringers or their VC’s have identifiable assets abroad) other relevant jurisdictions. In the USA, there is a very active market for contingent-fee plaintiff-side IP counsel, so Curve could begin asserting its rights potentially without any cost to veCRV. This should not just be for Saddle but for any infringer.”
The protocol believes Curve has created “something great,” and they should protect themselves.
This would further “set an important precedent in DAO’s and DeFi that decentralization does not mean that VC’s get to steal from communities.”
The proposal argues that they should review proposals from law firms and put them to the vote. Any settlement would also go to vote.