Canadian Bitcoin mining corporation Upstream Data Inc. has filed a patent infringement lawsuit against Delaware limited liability company Crusoe Energy Systems LLC in the United States District Court for the District of Colorado.
The lawsuit alleges that Crusoe has infringed on Upstream’s patent related to bitcoin mining technology used to convert stranded natural gas into bitcoin. According to the complaint, Upstream holds the patent for a system that powers a blockchain mine at remote oil well sites using stranded gas to generate electricity for cryptocurrency mining. According to the filing, the company has deployed over 350 bitcoin mining systems across the U.S. and Canada, addressing the issue of stranded gas venting and flaring.
Crusoe, which manufactures and operates cryptocurrency mining systems connected to stranded natural gas sources, is accused of competing with Upstream by selling and operating similar systems. The complaint claims that Crusoe’s “Digital Flare Mitigation” systems infringe on Upstream’s patented technology. The lawsuit further alleges that Crusoe was aware of Upstream’s patented technology during the development of its own products. The lawsuit filing highlights instances where Crusoe identified Upstream as a competitor in blog posts and claims made in patent applications.
The lawsuit seeks damages and injunctive relief against Crusoe for patent infringement. Upstream argues that Crusoe’s actions have caused harm to its business by infringing on its patent rights and creating unfair competition in the market.
The case will be heard in the United States District Court for the District of Colorado, where Crusoe has regular and established places of business according to the filing. Also noted in the lawsuit is a complaint filed against a customer of Upstream in Crusoe Energy Systems LLC v. Alkane Midstream LLC, which the lawsuit says “further confirm[s] Crusoe’s significant and substantial contacts with this district.” Upstream asserts in the lawsuit that the court has jurisdiction over the case.