08-17-2020 icon

PayPal Founder’s Bitcoin Mining Firm Accused of Copyright Infringement

By calvin
paypal founder

Layer1, a Bitcoin mining firm funded in-part by PayPal co-founder Peter Thiel has been accused of copyright infringement. A lawsuit was filed against Bitcoin(BTC) mining firm Layer1 for patent infringement.

Mining Company of Paypal Founder Faces Legal Hurdle

A complaint filed on August 14 suggests that the power usage model used by Layer1 violates the patent filed by Lancium LLC in March 2020. It is reported that Michael McNamara and Raymond Cline filed the patent after finding a new way to help data centers save energy by using the cost of electricity. 

According to the company, its data center power management system helps data centers to be more efficient with how they handle computing workloads that may involve Bitcoin mining.

In an official statement, McNamara says,

“We are the first load only CLR and we are dedicated to strengthening Texas’ and the nation’s grid..we developed and continue to develop and protect our revolutionary technology. We will also aggressively defend this intellectual property.”

Layer1 aims to become the biggest Bitcoin miner in the world by controlling different parts of the value chain, including chip manufacturing and electricity production. 

Crypto Gold Rush in Texas

Paypal co-founder Thiel and other high ranking investors put $50 million into the organization. Part of the money raised will be used by Layer1 to execute its plan for expansion which involves operating its own power sub-station and purchasing solar and wind energy in Texas.

The team is betting on a future where the key to Bitcoin mining lies in the heart of the United States, Texas. The business environment is said to be favorable for Bitcoin companies. 

According to Layer1 founder and chief executive Alexander Liegl,

“The future of bitcoin mining lies in the heart of the United States: Texas… this is where world-class electricity prices, friendly regulation, and an abundance of renewable energy sources meet. It is here that we are rapidly scaling our mining operations to bring as much hash rate as possible back to the United States.”

Like a growing number of Bitcoin investors, Thiel is excited about the future of Bitcoin. However, a growing number of legal hurdles await companies aiming to make profit from the industry. 

Photo by André François McKenzie on Unsplash