"Coinbase's Chief Legal Officer (CLO), Grewal, Stands Firm: Taking Legal Action Against Patent Bullies"

In a move that could set a precedent for the industry, Coinbase, the prominent cryptocurrency exchange, has filed a lawsuit against Dynapass Inc. and Dynapass IP Holdings over patent infringement claims. The legal battle, which is taking place in California, where Dynapass is based, appears to be about more than one patent; it's about drawing a line against what Coinbase views as an industry-wide problem.

At the heart of the dispute is U.S. Patent No. 6,993,658, which covers the use of personal devices for user authentication. Coinbase argues that the patent doesn't meet U.S. legal standards for a valid patent under the Supreme Court's Alice ruling. The exchange enforced two-factor authentication (2FA) since at least 2018, a practice that Dynapass claims violates this patent.

Dynapass sent a letter on July 18, 2025, demanding damages and pointing to its history of winning similar cases against other companies. However, Coinbase's Chief Legal Officer, Paul Grewal, made a public statement that the exchange has no plans to settle dubious claims and that it sues instead. By refusing to pay settlements and instead filing suit, Coinbase is positioning itself as a defender against what it sees as abusive legal tactics by patent assertion entities.

Coinbase's legal representation is from Jones Day, while Latham & Watkins LLP represents Dynapass Inc. and Dynapass IP Holdings. The company's complaint also asks the court to declare the case "exceptional", which could allow Coinbase to recover attorneys' fees and costs.

It's worth noting that the patent expired in March 2020. However, Dynapass's refusal to withdraw its claims by the August 11 deadline led Coinbase to escalate the matter to court. In response, Coinbase submitted evidence on August 1 to show why its practices do not violate the patent.

This legal battle comes amidst another lawsuit involving Investors and Bitcoin Treasury firm Strategy, titled "Investors Withdraw Lawsuit Against Bitcoin Treasury Firm Strategy". As the outcome of the Coinbase vs. Dynapass case unfolds, it may embolden other firms to resist settlement pressure and challenge questionable claims head-on.

"Coinbase's Chief Legal Officer (CLO), Grewal, Stands Firm: Taking Legal Action Against Patent Bullies"