1. Startup

[DS Notes] Kim Dotcom Has a Patent on Two Factor Authentication

Two-factor authentication is a secure login method involving the use of a second passcode to access a service transmitted when a login attempt is detected. The method commonly works by having the service send an SMS to the account holder’s mobile phone number and have the passcode in that SMS entered into the service, thereby ensuring the authenticity of the user. Alternatively, it also works through an authentication app or device tied to the service, which randomly generates the second passcode.

While many companies and services have implemented this security method, it may have come as a surprise that nobody has bothered to check whether there’s a patent on this. As it turns out, Kim Dotcom is the one who holds this patent. Dotcom, who is currently in legal battle with the US government over his now defunct Megaupload storage service, has had it for more than a decade, predating many, perhaps all, currently active implementations.

Dotcom has quietly been allowing companies to implement his patended method for free but has now asked the likes of Google, Facebook, and Twitter to help fund his legal defense or face a lawsuit. Torrentfreak has Dotcom’s statement regarding the patent and the request.

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