Circle to Acquire Nearly 1,000 IBM Blockchain Patents

The company did not disclose the financial terms of the transaction. Following the announcement, Circle’s CRCL shares rose by more than 2% in premarket trading, according to Yahoo Finance.

The portfolio includes more than 680 patent families and nearly 1,000 issued patents worldwide. Circle said the acquisition would make it the largest holder of blockchain patents in the United States and strengthen its intellectual property position as it continues developing infrastructure for an internet-based financial system.

IBM’s blockchain patents expand Circle’s technology base

IBM’s blockchain work has largely focused on supply chain applications designed to improve transparency when products move through multiple intermediaries. However, the company has reduced its blockchain patent activity in recent years. Research firm GreyB said IBM filed more than 500 blockchain-related patents during its peak filing period between 2018 and 2019.

The acquisition gives Circle access to a broad range of blockchain-related intellectual property that could support its work across digital payments, stablecoins and financial infrastructure.

Circle strengthens its position in blockchain infrastructure

Circle said the deal reflects its wider strategy of building technology for global, internet-native finance. “IBM has been a pioneer in technological innovation, and this acquisition expands Circle’s ability to advance the infrastructure that powers global, internet-native finance,” said Sarah Wilson, general counsel and corporate secretary at Circle.

Sources:

https://newsroom.ibm.com/2021-04-20-IPwe-and-IBM-Seek-to-Transform-Corporate-Patents-With-Next-Generation-NFTs-Using-IBM-Blockchain

https://cointelegraph.com/news/circle-to-acquire-nearly-1000-ibm-blockchain-patents

https://www.circle.com/pressroom/circle-acquires-ibm-blockchain-patent-portfolio