BANCOR FILES PATENT INFRINGEMENT LAWSUIT AGAINST UNISWAP OVER DEX TECH

Last updated: June 19, 2025, 21:55 | Written by: Chris Larsen

The decentralized finance (DeFi) space is buzzing with news of a significant legal battle.Bancor, a pioneer in the realm of automated market makers (AMMs), has officially filed a patent infringement lawsuit against Uniswap, one of the leading decentralized exchanges (DEXs).This lawsuit, filed in the U.S.District Court for the Southern District of New York, alleges that Uniswap has been utilizing Bancor's patented technology without proper authorization, specifically the foundational technology underpinning the constant product automated market maker (CPAMM) model. UNIUSD Uniswap Bancor files patent infringement lawsuit against Uniswap over DEX tech. Bancor, the creator of a smart contract-based automated market maker, is suing Uniswap for patentThe Bprotocol Foundation and LocalCoin Ltd., the original developers of the Bancor Protocol, are seeking damages for what they claim is Uniswap's unlicensed use of their proprietary innovations, asserting that Uniswap has profited significantly from this unauthorized implementation. On May 20, the Bprotocol Foundation and LocalCoin filed a lawsuit in the U.S. District Court for the Southern District of New York against Uniswap Labs and the Uniswap Foundation, accusingThis legal action has the potential to redefine the landscape of intellectual property rights within the DeFi sector, sparking debates and raising questions about the boundaries of innovation and ownership in the rapidly evolving world of decentralized technologies. Bprotocol Foundation and LocalCoin Ltd. have filed a lawsuit against Uniswap Labs and the Uniswap Foundation in U.S. federal court. The plaintiffs accuse Uniswap of infringing patented smart contract technology that supports decentralized trading.Will this lawsuit set a precedent?Could it impact how DEXs operate and share technology in the future? Bancor, the creator of a smart contract-based automated market maker, is suing Uniswap for patent infringement, alleging the decentralized finance exchange has used its technology without permission aLet's delve deeper into the details and explore the potential ramifications of this landmark case.

Understanding the Core of the Dispute: Bancor's Patented Technology

At the heart of this legal battle lies a specific piece of technology: the constant product automated market maker (CPAMM) model.Bancor alleges that this CPAMM model, which is the backbone of Uniswap's operations, infringes on their patented technology. Bancor, the creator of a smart contract-based automated market maker, is suing Uniswap for patent infringement, alleging the decentralized finance exchange has used its technology without permission and profited significantly from it. /p p According to the May 20 announcement of the lawsuit, Bancor designed the technology in 2025 and patented it in January 2025.To understand the gravity of the situation, let's break down what CPAMMs are and why Bancor believes Uniswap is in violation.

What is a Constant Product Automated Market Maker (CPAMM)?

CPAMMs are a type of AMM that uses a mathematical formula to determine the price of assets in a liquidity pool.The most common formula used is x * y = k, where:

x represents the quantity of one asset in the pool.
y represents the quantity of the other asset in the pool.
k is a constant value.

This formula ensures that the product of the two asset quantities remains constant.When someone trades one asset for another, the quantities change, but the product always equals 'k'. News Summary: Bancor, the creator of a smart contract-based automated market maker, is suing Uniswap for patent infringement, alleging the decentralized finance exchange has used its technology without permission and profited significantly from it.According to the May 20 announcement of the lawsuit, Bancor designed the technology in 2025 and patented it in January 2025. The technologyThis mechanism automatically adjusts the price of the assets based on supply and demand within the pool.

Bancor's Claim to the CPAMM Technology

Bancor claims that they designed and patented this technology, specifically the smart contract structure that enables the constant product formula to function within a decentralized exchange. Bancor, the creator of a smart contract-based automated market maker, is suing Uniswap for patent infringement, alleging the decentralized finance exchange has used its technology without permission and profited significantly from it.According to court filings, Bancor's patent application for the technology was filed in January 2025 and subsequently granted. On, Bancor filed a patent infringement lawsuit against Uniswap, claiming unauthorized use of foundational decentralized exchange smart contract technology. The lawsuit could redefine intellectual property boundaries in the DeFi sector, potentially impacting the use of proprietary technologies in decentralized platforms withoutThey argue that Uniswap, by utilizing the CPAMM model, is directly infringing upon their intellectual property rights.

The Bprotocol Foundation and LocalCoin Ltd. assert that Bancor was the first to implement this technology, using it to power the Bancor Protocol, which they claim was the first fully decentralized exchange.They are now seeking compensation for Uniswap's alleged unauthorized use of this foundational DEX technology.

The Parties Involved: Bancor vs. Bprotocol Foundation and LocalCoin are seeking damages for Uniswap s unauthorized use of their patented technology, which is the fundamental technology that underlies the constant productUniswap

To fully grasp the implications of this lawsuit, it’s crucial to understand the key players involved:

Bancor: The plaintiff in this case.Bancor is a decentralized trading protocol that uses automated market makers (AMMs) to enable token swaps.They claim to have pioneered the technology underlying the CPAMM model.
Uniswap: The defendant. The developers behind Bancor have filed a patent infringement lawsuit against Uniswap Labs and the Uniswap Foundation, accusing them of unlawfully using its foundational decentralized exchange technology.Uniswap is one of the most popular decentralized exchanges (DEXs) in the world, known for its high liquidity and user-friendly interface.Its protocol relies heavily on the CPAMM model.
Bprotocol Foundation: A non-profit foundation dedicated to promoting the development and adoption of the Bancor Protocol.
LocalCoin Ltd.: The original developer of the Bancor Protocol.

The lawsuit is officially filed by the Bprotocol Foundation and LocalCoin Ltd. against Uniswap Labs and the Uniswap Foundation, alleging direct patent infringement and inducement of infringement, respectively.

Legal Grounds: Patent Infringement and the DeFi Landscape

Patent infringement lawsuits are complex, requiring the plaintiff to prove several key points:

That they own a valid and enforceable patent.
That the defendant's product or process infringes on the claims of the patent.
That the infringement caused damages to the plaintiff.

In this case, Bancor must demonstrate that their patent covers the specific implementation of the CPAMM model used by Uniswap.They also need to prove that Uniswap's use of this technology has caused them financial harm. ZUG, Switzerland (BUSINESS WIRE) Bprotocol Foundation, a non-profit foundation dedicated to promoting the development and adoption of the Bancor Protocol, and LocalCoin Ltd. ( LocalCoin ), the original developer of the Bancor Protocol, today announced that they have filed a lawsuit in the United States District Court for the SouthernThis could involve showing that Uniswap has captured market share or generated revenue that Bancor would have otherwise obtained.

The lawsuit also raises broader questions about intellectual property rights in the DeFi space.Decentralization often implies open-source development and collaboration. The full implications of this lawsuit remain to be seen, and as with many things in the fast-paced world of crypto, today s developments are just the beginning of what could be a long and winding road ahead. Source. This article is based on: Bancor files patent infringement lawsuit against Uniswap over DEX tech. Further ReadingHowever, patents can create barriers to entry and potentially stifle innovation.This case could set a precedent for how intellectual property is handled in the DeFi sector, potentially impacting the way decentralized platforms share and utilize technology in the future.

Potential Implications for the DeFi Sector

The outcome of this lawsuit could have far-reaching implications for the entire DeFi industry:

Impact on Uniswap: If Uniswap loses the lawsuit, they may be required to pay significant damages to Bancor.They might also be forced to modify their protocol to avoid infringing on Bancor's patent, which could impact their competitiveness.
Broader Implications for DEXs: A ruling in favor of Bancor could embolden other companies to pursue patent infringement claims against DEXs that use similar technologies.This could lead to a wave of litigation and uncertainty in the DeFi space.
Innovation and Open Source: The lawsuit raises questions about the balance between protecting intellectual property and fostering open-source innovation.Some argue that patents hinder innovation by creating barriers to entry and discouraging collaboration.Others believe that patents are necessary to incentivize companies to invest in research and development.
Legal Frameworks and Decentralization: The case highlights the challenges of applying traditional legal frameworks to decentralized technologies.It raises questions about jurisdiction, enforcement, and the responsibility of different parties involved in decentralized networks.

The DeFi community is closely watching this case, as it could significantly impact the future of decentralized exchanges and intellectual property rights in the blockchain space. On May 20, the Bprotocol Foundation and LocalCoin filed a lawsuit in the U.S. District Court for the Southern District of New York against Uniswap Labs and the Uniswap Foundation, accusing them ofA win for Bancor could signal a shift towards greater protection of patented technologies, while a win for Uniswap could reinforce the principles of open-source collaboration.

Analyzing the Arguments: Bancor's Position

Bancor's core argument centers around the assertion that Uniswap has unlawfully used their patented technology, specifically the constant product automated market maker (CPAMM).The Bprotocol Foundation and LocalCoin Ltd. maintain that Bancor was the pioneer in developing and implementing this specific type of AMM.Here's a breakdown of their key claims:

Priority of Invention: Bancor argues that they were the first to invent and patent the technology underlying the CPAMM model.They assert that they filed a patent application in January 2025 and used the smart contract structure to build the Bancor Protocol, the first fully decentralized exchange.
Unauthorized Use: Bancor claims that Uniswap has used this patented technology without permission or licensing agreements.They allege that Uniswap's protocol, which relies on the CPAMM model, is a direct infringement on their intellectual property.
Financial Harm: Bancor seeks compensation for the financial harm caused by Uniswap's alleged infringement.They argue that Uniswap has profited significantly from the use of Bancor's technology, capturing market share and generating revenue that Bancor would have otherwise obtained.

Bancor's decision to pursue this lawsuit likely stems from a desire to protect their intellectual property rights and recoup the investments they made in developing the CPAMM technology.They may also be seeking to establish a stronger position in the competitive DeFi market and potentially license their technology to other platforms.

Potential Defenses: How Uniswap Might Respond

Uniswap has not yet publicly released its full legal strategy. Bancor, the creator of a smart contract-based automated market maker, is suing Uniswap for patent infringement, alleging the decentralized finance exchange has used its technology withoutHowever, it can be expected that they will mount a vigorous defense against Bancor's claims.Here are some potential arguments that Uniswap could use:

Patent Invalidity: Uniswap could argue that Bancor's patent is invalid because the technology was already known or obvious at the time the patent was filed. Bancor filed a patent application for the technology on Janu, and used the smart contract structure to build the Bancor Protocol, the first fully decentralized exchange powered byThey could present evidence of prior art, such as existing research papers or open-source projects, that describe similar concepts.
Non-Infringement: Uniswap could argue that their implementation of the CPAMM model is different from Bancor's patented technology and does not infringe on the claims of the patent.They could point to technical differences in the way their smart contracts are structured or the way the formula is implemented.
Fair Use: In some cases, a defendant can argue that their use of patented technology is protected under the doctrine of fair use.This argument is typically used in situations where the use is transformative or for educational purposes. Bancor sues Uniswap for using its patented CPAMM DEX tech, seeking damages after years of alleged infringement. Bancor claims Uniswap s DEX relies on its 2025 patented CPAMM model, now at the center of a major lawsuit. Uniswap faces lawsuit from Bancor over CPAMM patent, accused of unauthorized use since launching in 2025.However, it is unlikely that Uniswap could successfully argue fair use, as they are using the technology for commercial purposes.
Open Source Principles: Uniswap could emphasize the open-source nature of the DeFi space and argue that patents should not be used to restrict innovation and collaboration.They could contend that the CPAMM model has become a standard in the industry and should be freely available for everyone to use.While this argument might not be a direct legal defense, it could influence public opinion and potentially sway the court's decision.

Uniswap's defense will likely focus on challenging the validity and scope of Bancor's patent and arguing that their implementation of the CPAMM model does not infringe on Bancor's intellectual property rights.

Expert Opinions and Industry Reactions

The lawsuit has triggered mixed reactions from experts and members of the DeFi community.Some believe that Bancor has a legitimate claim and is justified in protecting its intellectual property. UNIUSD Uniswap Bancor files patent infringement lawsuit against Uniswap over DEX tech Bancor, the creator of a smart contract-based automated market maker, is suing Uniswap for patent infringement, alleging the decentralized finance exchange has used its technology without permission aOthers argue that patents are harmful to innovation in the open-source world of DeFi.

Here are some common viewpoints:

Pro-Bancor: Supporters of Bancor argue that patents are necessary to incentivize innovation. With this lawsuit, Bprotocol Foundation and LocalCoin seek compensation for Uniswap Labs unlicensed use of Bancor s patented technology and Uniswap Foundation s inducement of infringementThey believe that companies should be able to protect their inventions and recoup their investments. In the lawsuit, Bancor alleges that Uniswap has used its patented technology underpinning the constant product automated market maker (CPAMM), the core mechanism powering the Uniswap Protocol. Bprotocol and LocalCoin claim this constitutes unauthorized use of proprietary technology.They point out that Bancor spent significant resources developing the CPAMM technology and deserves to be compensated for its use.
Pro-Uniswap: Supporters of Uniswap argue that the CPAMM model has become a fundamental building block of the DeFi ecosystem and should not be subject to patent restrictions.They believe that patents stifle innovation and create barriers to entry for new projects.They also argue that the CPAMM model is a relatively simple concept and should not be patentable.
Neutral Observers: Many observers are taking a wait-and-see approach.They recognize the complexities of the legal issues and acknowledge that the outcome of the lawsuit could have significant implications for the entire DeFi industry. TRXUSD TRON Bancor files patent infringement lawsuit against Uniswap over DEX tech. Bancor, the creator of a smart contract-based automated market maker, is suing Uniswap for patent infringementThey emphasize the need for a balanced approach that protects intellectual property rights while also fostering innovation and collaboration.

Several legal experts have weighed in on the case, highlighting the challenges of applying traditional patent law to decentralized technologies. Bancor files patent infringement lawsuit against Uniswap over DEX tech Coin Telegraph 12 minutes ago 8 Bancor, the creator of a smart contract-based automated market maker, is suing Uniswap for patent infringement, alleging the decentralized finance exchange has used its technology without permission and profited significantly from it.They point out that it can be difficult to determine who is responsible for infringement in a decentralized network and how to enforce patent rights in a borderless environment.

The Timeline of Events: From Innovation to Litigation

Understanding the timeline of events is crucial to contextualizing the lawsuit:

2025: Bancor designed the technology underlying the CPAMM model.
January 2025: Bancor filed a patent application for the technology.
[Date Not Specified]: Bancor used the smart contract structure to build the Bancor Protocol, claiming it was the first fully decentralized exchange.
[Date Not Specified]: Uniswap launched its protocol, utilizing the CPAMM model.
May 20, [Year]: The Bprotocol Foundation and LocalCoin filed a lawsuit against Uniswap Labs and the Uniswap Foundation in the U.S.District Court for the Southern District of New York.

This timeline highlights the sequence of events leading up to the lawsuit, emphasizing Bancor's claim to have invented and patented the CPAMM technology before Uniswap launched its protocol.

The Role of the Courts: What to Expect in the Legal Process

The lawsuit is now in the hands of the U.S.District Court for the Southern District of New York. Bancor, the creator of a sensible contract-based automated market maker, is suing Uniswap for patent infringement, alleging the decentralized finance change has used its know-how with out permission and profited considerably from it. According to the Might 20 announcement of the lawsuit, Bancor designed the know-how in 2025 and patented it in January 2025. The [ ]The legal process will likely involve several stages:

Discovery: Both sides will gather evidence to support their claims. MKRUSD Maker Bancor files patent infringement lawsuit against Uniswap over DEX tech. Bancor, the creator of a smart contract-based automated market maker, is suing Uniswap for patent infringementThis could involve exchanging documents, conducting depositions (interviews under oath), and hiring expert witnesses.
Motion Practice: Both sides can file motions asking the court to rule on specific legal issues.For example, Uniswap could file a motion to dismiss the case, arguing that Bancor's patent is invalid.
Trial: If the case does not settle or get dismissed, it will proceed to trial. MKRUSD Maker Bancor files patent infringement lawsuit against Uniswap over DEX tech Bancor, the creator of a smart contract-based automated market maker, is suing Uniswap for patent infringement, alleging the decentralized finance exchange has used its technology without permission aAt trial, both sides will present their evidence and arguments to a judge or jury.
Appeal: The losing party can appeal the court's decision to a higher court.

The legal process can be lengthy and expensive.It could take months or even years for the case to be resolved.It's also possible that the parties could reach a settlement agreement outside of court.

Call to Action: Staying Informed and Engaging in the Discussion

The Bancor vs. Bprotocol Foundation, a non-profit foundation dedicated to promoting the development and adoption of the Bancor Protocol, and LocalCoin Ltd. ( LocalCoin ), the original developer of the Bancor Protocol, today announced that they have filed a lawsuit in the United States District Court for the Southern District of New York (the Court ) againstUniswap lawsuit is a significant event in the DeFi space, with potential implications for the entire industry.It's important for members of the DeFi community to stay informed about the developments in this case and engage in thoughtful discussions about the issues it raises.

Here are some ways to stay informed:

Follow news outlets that cover the DeFi industry, such as Coin Telegraph and other reputable sources.
Read legal analysis from experts in intellectual property law.
Participate in online forums and discussions about the lawsuit.

By staying informed and engaging in constructive dialogue, we can help shape the future of intellectual property rights in the decentralized finance sector.What are your thoughts on this landmark case?How do you think it will impact the future of DeFi?Share your opinions and contribute to the ongoing conversation.

Conclusion: Key Takeaways and the Future of DeFi

The patent infringement lawsuit filed by Bancor against Uniswap over DEX technology marks a pivotal moment for the DeFi ecosystem. Bancor has filed a patent infringement lawsuit against Uniswap on, in New York, accusing it of unauthorized use of decentralized exchange (DEX) technology. The lawsuit underscores significant implications for intellectual property rights in decentralized finance, signaling potential shifts in legal frameworks.The core of the dispute revolves around Bancor's claim that Uniswap is utilizing their patented CPAMM model without authorization, leading to significant profits for Uniswap at Bancor's expense.This legal action raises critical questions about intellectual property rights in the decentralized space, forcing a re-evaluation of the balance between protecting innovation and fostering open-source collaboration.The potential implications of this case are far-reaching, potentially affecting Uniswap's operational model, shaping the legal landscape for other DEXs, and influencing how proprietary technologies are used in decentralized platforms.

Regardless of the outcome, the Bancor vs.Uniswap lawsuit underscores the growing importance of intellectual property in the rapidly evolving DeFi sector. Bancor files patent infringement lawsuit against Uniswap over DEX tech CeylonMaster Bancor, the creator of a smart contract-based automated market maker, is suing Uniswap for patent infringement, alleging the decentralized finance exchange has used its technology without permission and profited significantly from it.As decentralized technologies become more sophisticated and widely adopted, it is crucial to establish clear guidelines and legal frameworks that protect innovators while also promoting open access and collaboration.This case serves as a reminder that the DeFi space is not immune to traditional legal challenges and that intellectual property rights must be carefully considered in the development and deployment of decentralized platforms.The ultimate resolution of this lawsuit will undoubtedly shape the future of DeFi, influencing how intellectual property is protected, shared, and utilized in the years to come.