Digital Shovel Holdings Inc. has filed a lawsuit against RK Mission Critical LLC, RK Mechanical LLC, and RK Industries LLC in the U.S. District Court for the District of Colorado, alleging patent infringement, according to a press release sent to Bitcoin Magazine. The dispute centers around Digital Shovel’s V-Shape technology, which is designed to increase mining density in cryptocurrency mining containers.
Digital Shovel developed the V-Shape technology in 2018 and was granted patents in 2022, 2023, and 2024. The patents allow for a 30% increase in mining density, providing significant operational benefits. According to the complaint, Compute North, a client of RK Mission Critical, initially sought to license the technology from Digital Shovel in 2019 but was denied. Despite this, RK Mission Critical allegedly produced containers that looked so similar to Digital Shovel’s that some employees initially mistook them for their own products.
“Instead of fair competition, Defendants are exploiting innovative technologies that Digital Shovel has worked hard to develop and protect through patents,” the complaint states.
Digital Shovel CEO Scott Johnson stated that based on RK Mission Critical marketing, they believe they have sold approximately 850 units that have been sold for over $200,000 per unit, resulting in $170 million in product sales.
“A variety of publicly traded mining companies use RK’s product,” Johnson said. “However, our focus is not on these companies or any other end user at this time. It is on enforcing our intellectual property on the company that is building products using our technology and stealing customers from us.”
Despite being aware of the pending patents since 2021, Digital Shovel alleges that RK Mission Critical has continued to produce them without a license, and that its refusal to enter into settlement negotiations has prompted Digital Shovel to seek legal redress. The company is seeking damages and an injunction to prevent further sales of the infringing containers.
Bitcoin Magazine will interview Johnson in an upcoming issue. Distances on X Later today at 1:15 p.m. EST, those interested in learning more about this lawsuit are encouraged to attend.
