News

Sometimes crypto proves it really isn't all that different from other industries.

Case in point, digital mining company Digital Shovel has found itself in a legal battle with RK Mission Critical, spotlighting concerns about intellectual property in Web3.

Roundtable anchor, Rob Nelson, opened the discussion with Scot Johnson, CEO of Digital Shovel, by addressing the company's ongoing lawsuit, focusing on the patent dispute surrounding Digital Shovel’s V technology.

“In the early years of our company, we started developing a technology that allowed for dramatically higher density in a conventional shipping container," Johnson said. "That is something that we invented and then protected with a series of patents.”

Johnson elaborated on the conflict, explaining that a client’s demand for increased capacity led to RK Mission Critical allegedly replicating Digital Shovel’s patented technology. He emphasized, “RK Mission Critical was hired after one of our clients needed more capacity… They went on to contract them to, in our opinion, copy the majority of our technology in that container.” This action, Johnson argued, was a clear violation of their intellectual property rights.

Nelson highlighted the often-overlooked physical infrastructure behind digital mining, noting the critical role infrastructure plays. Johnson clarified, “We relied heavily on shipping containers because it was an easy way to expand and have a modular, expandable platform.” He further detailed the company’s shift to custom modular buildings, marking an evolution in their approach and underscoring the importance of protecting their innovations.

The conversation also addressed the broader implications of legal battles in the space, particularly as Web3 evolves.

Nelson pointed out, “People are going to be stealing things that aren’t physical… they’re going to steal the things that aren’t physical and in that way take and gain unfair access or power.” Johnson agreed, noting that while they have physical evidence to support their case, proving theft in the digital realm is even more challenging.