New Moves by Bots Inc.
Based in Puerto Rico, the blockchain and robotics firm Bots Inc. is gearing up for a legal showdown against Bitcoin ATM operators across the United States. Two weeks ago, the company snagged a patent for protocols crucial to the functioning of Bitcoin ATMs, and they’re now eyeing a lucrative future that could mean millions in royalties.
The Patent Dream
Bots Inc. is not just sitting on its patent like a kid with a shiny new toy. CEO Paul Rosenberg believes that their U.S. Patent No. 9,135,787 B1—affectionately dubbed the “Bitcoin Kiosk Patent”—can bring in anywhere from $14 million to $18 million monthly. They’re planning to negotiate per-transaction royalties that might even cover past transactions. Talk about looking to the past for a profitable future!
Bitcoin ATM Landscape
Currently, there are over 9,400 Bitcoin ATMs scattered throughout the U.S., each processing between 130 and 180 transactions monthly. That’s a lot of Bitcoin moving in and out, and Bots wants their share of the pie. But will they convince operators that their technology is as essential as they claim? Only time will tell.
From Acquisition to Action
Bots Inc. secured the Bitcoin kiosk patent on October 29 through its subsidiary, First Bitcoin Capital LLC. Originally filed in 2014, the patent has passed through more hands than a hot potato. First Bitcoin Capital had previously attempted a $50 million royalty campaign, which didn’t take off—as if a balloon hit a cactus. Bots seems determined to change that narrative with its renewed focus on royalty collections.
A Cooperative Approach?
In a twist of fate that could rival any soap opera, Bots is hoping for a peaceful resolution with ATM operators, offering them a chance to join a consortium of Bitcoin ATMs instead of slinging lawsuits. This initiative aims to establish a worldwide Bitcoin ATM network that touts interoperability among terminals—because who doesn’t love sharing?
Community Backlash and Countermeasures
The crypto world has been less than pleased with companies dabbling in patenting tech that restricts access. Square, a notable player in financial services, launched its own initiative— the “Crypto Open Patent Alliance”—to combat patent trolling within the blockchain sector. This consortium could serve as both a shield and a sword against aggressive patent tactics in the crypto realm.
