Matter Labs’ ‘ZK’ Trademark Faces Pushback

Matter Labs has submitted trademark applications in nine nations to secure the term “zero-knowledge” as their exclusive intellectual property, causing a stir in the cryptocurrency community. The company, which is behind the development of zkSync, has previously attempted to register a token with the ticker symbol “ZK” on cryptocurrency exchanges. This move seems to be an effort to consolidate their hold over the technological concept.

Zero-knowledge (ZK) technology involves cryptographic protocols that allow one party (the prover) to convince another party (the verifier) that a statement is true without revealing any information about the statement itself. Matter Labs’ initiative to trademark ZK technology has been labeled an “absurd IP grab” by Eli Ben-Sasson, CEO of StarkWare. Ben-Sasson criticized the move, stating, “ZK cryptography was developed for the benefit of everyone. It’s disgraceful to see a company trying to appropriate ‘ZK’ as private intellectual property. It’s as ridiculous as a baker trying to patent bread.”

Prominent figures in the cryptocurrency industry are urging Matter Labs to retract their trademark application, calling it “oppressive behavior.” This appeal was made in a public letter signed by key individuals such as Polygon co-founders Sandeep Nailwal and Brendan Farmer, StarkWare CEO Eli Ben-Sasson, Polyhedra Network co-founder and zkBridge inventor Tiancheng Xie, and Turing Award winner and ZK-proofs co-inventor Shafi Goldwasser. The letter asserts, “We believe that ZK is a public good that belongs to everyone. A company leveraging the legal system to monopolize a public good goes against the ethos of crypto, Ethereum, and academic principles. It even contravenes Matter Labs’ own stated values.”

The controversy centers on the significant potential of ZK technology, which many believe should not be monopolized by any single entity. Ben-Sasson highlighted the broad applications of ZK cryptography, stating, “ZK cryptography has immense potential for humanity—extending far beyond blockchain technology. We in the blockchain space are privileged to be at the forefront of its initial major use case and hope this will lead to numerous other applications.”

ZK-proofs, despite being a relatively new technological development, are gaining increasing importance in the realm of digital identity solutions. These cryptographic techniques could play a crucial role in creating privacy-focused digital identity systems, such as the new digital identity solution proposed for Europe. Dr. Jonas Gross, CEO of Hakata, emphasized the transformative potential of ZKPs, noting, “ZKPs have the potential to establish a new compliance paradigm that dismantles data silos around identity information.”

The pushback from the crypto community underscores the belief that ZK technology should be a shared resource rather than proprietary intellectual property. The debate highlights broader concerns about the commercialization of open-source technologies and the ethical implications of such moves. Critics argue that Matter Labs’ actions contradict the collaborative, open ethos that has traditionally underpinned the development of cryptographic and blockchain innovations.

Given the significant backlash, it remains to be seen whether Matter Labs will reconsider their trademark applications. The situation serves as a critical test of how intellectual property law intersects with the open and decentralized values of the cryptocurrency world. The outcome could set a significant precedent for the future of technological innovation and its ownership.

As the debate unfolds, the crypto industry is keenly watching to see how Matter Labs responds. The firm’s next steps could either affirm or challenge the communal spirit that has driven much of the progress in cryptographic research and development. With mounting pressure from industry leaders, the resolution of this controversy will likely have far-reaching implications.

In this rapidly evolving landscape, the discussions and decisions made today will shape the future of not only ZK technology but also the broader principles of openness and collaboration in the technological domain.