Blockchain payment company Rocketfuel Blockchain has filed a lawsuit against its co-founder for alleged misrepresentation of patent applications and fraud with the company.
In a lawsuit filed in California District Court, Rocketfuel claimed that co-founder and former treasurer Joseph Page hid that the patents he transferred to the company had expired. The company is seeking compensation of at least $ 5.1 million.
According to Rocketfuel, Page transferred the company’s patent applications in March 2018, thereby revoking its patent rights. These patents were related to several payments to the Rocketfuel blockchain platform, including cryptocurrency user interface systems.
B4MC Gold Mines acquired Rocketfuel in June 2018. When B4MC acquired the company and began operating on behalf of Rocketfuel, Page revealed that the patents were being processed by the United States Patent and Trademark Office (PTO). Page and other shareholders sold their shares in Rocketfuel and received five million shares in the newly acquired company, valued at approximately $ 45 million.
A year later, Page resigned from the board. Rocketfuel’s shareholders demanded a return of 4 million euros of capital to develop the technology described in the patent, or to pay 100,000 euros and return her intellectual property rights.
But Rocketfuel said the patent applications had expired and the company could no longer renew them. It was decided that between 2014 and 2017 three of the five patents owned by Rocketfuel will be revoked at the moment.
The company said that Page admitted that the patents expired in June 2019, but said it was due to Rocketfuel’s failure to raise capital to use the technology. However, the company said that Page allowed the patents to expire because he did not pay an additional filing fee and did not respond to other PTO requests.
Rocketfuel said that if she knew she could not use the patents, she would never have been acquired. They claim that Page transferred the patents to Rocketfuel and applied for shares on the stock exchange, even though he knew that the patents no longer had value for the company.