Energy and data center firm Lancium suffered a legal setback after conceding an inter partes review challenge at the U.S. Patent and Trademark Office (USPTO).
U.S. Patent No. 11,016,456 B2–which described a “method and system for dynamic power delivery to a flexible datacenter using unutilized energy sources–was jointly challenged by Bitcoin mining firms Cholla Energy and OBM, also known as Foreman–in May 2024.
After the USPTO review, Lancium chose to file a motion for adverse judgment on March 13, effectively nullifying all 26 challenged claims. The USPTO is still reviewing one further patent challenge by Cholla Energy and OBM, US Patent 10,608,433, relating to a similar technology.
OBM initially challenged Lancium in a complaint filed in US District Court in the Southern District of Texas in May 2023, which closed later that year.
However, Lancium’s patent over energy usage in flexible datacenter’s continued to present a thorn for certain Bitcoin mining operations, as claimed by OBM in an October 2023 blog post:
“By limiting the introduction of innovative energy management and cost optimization software, crypto miners will be limited to compliance with ERCOT standards and will be unable to continuously improve their energy efficiency through measured load management and cost containment.
“Continuing to allow Lancium’s monopolizing patent does not uphold the spirit of innovation that today’s energy ecosystem—and Texas itself—was built on.”
Lancium recently entered into a commercial agreement with Crusoe Energy to construct a 200 MW data campus in Abilene, Texas. The firm has raised over $650 million, per CB Insights.
OBM and Lancium did not respond to questions for comment by press time.
