Cardano CEO Charles Hoskinson has clarified the lawsuit case brought against the Cardano Foundation by tech firm Z/Yen Group. Cardano had made an announcement on its website on March 16th reporting that Z/Yen Group had initiated legal proceedings against the foundation.
As expected the news gained traction within the crypto community with a number of speculations arising about how this could disrupt the development of the blockchain platform.
Hoskinson Says Lawsuit with Z/Yen Group is Commercial in Nature
Hoskinson in a video posted on his YouTube account earlier today revealed further information regarding the lawsuit. According to him, the lawsuit had stemmed from an agreement made by former Chairman of Cardano foundation Michael Parsons in 2017.
Parsons had allegedly contacted Z/Yen Group to conduct industry-based research that was independent of the Cardano blockchain. This partnership resulted in a report co-authored by the two firms titled “The Quantum Countdown: Quantum Computing and the Future of Distributed Ledger Encryption.”
Following the dismissal of Parsons from Cardano Foundation in 2018, the new regime sought to re-evaluate previous commercial agreements and failed to renew the contract with Z/Yen Group.
It had been reported that Z/Yen Group, in the lawsuit, claimed intellectual rights towards some of the information that was provided in the report from 2018.
However, Hoskinson refuted the claim, saying the current lawsuit was a commercial dispute and not an intellectual dispute. He further claimed that none of the information used in the research reports with Z/Yen Group has ended up within the protocol, code or design of the Cardano blockchain.
Hoskinson also believes that the dispute will be resolved quickly as the amount involved was not a lot of money and Cardano foundation could move on.
Cardano is regarded as one of the most innovative blockchain platforms in the crypto space. Its highly anticipated release of its Shelley Mainnet is expected to bring a revolutionary trend to the blockchain industry in terms of scalability.
Its native token ADA is currently placed 14th on the coin rankings with a market cap of around $662 million and valued at $0.025569 per unit.