Bancor sues Uniswap for patent infringement, alleging the decentralized exchange has used its technology without permission

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.

This news article reports on a lawsuit filed by Bancor against Uniswap for patent infringement. The article accurately conveys the lawsuit's claims and provides relevant details about the technologies and organizations involved. It also includes a statement from Bancor and a quote from the lawsuit itself.

However, the article could be improved by including a response from Uniswap to the lawsuit. It would also be helpful to provide some background information on the two organizations and their place in the decentralized finance sector.

Overall, the article provides a clear and concise overview of the lawsuit and is written in a neutral and informative tone. It is a good example of how to report on a legal dispute in a factual and engaging manner.

Here is a summary of the lawsuit, according to the complaint:

* Bancor designed the technology in 2016 and patented it in January 2017. The technology underlies the “constant product automated market maker,” which uses mathematics to add or withdraw resources from a liquidity pool. The application subsequently led to two issued patents.

* Uniswap used the invention to create its protocol, which launched in November 2018.

* The two organizations are considered competitors in the sector of decentralized finance (DeFi).

* At the time of publication, Uniswap had not publicly responded to the lawsuit, which was filed in the US District Court for the Southern District of New York.

* Bprotocol Foundation and LocalCoin are seeking compensation for Uniswap Labs’ unlicensed use of Bancor’s patented technology and Uniswap Foundation’s inducement of infringement, the complaint read.

Uniswap dwarfs Bancor in some DEX metrics

The data aggregator DefiLlama ranks Uniswap as the second among all decentralized exchanges by 24-hour trading volume, with nearly $3.8 billion traded.

At No. 142 is Bancor, which trades a 24-hour volume of $378,579.

The report comes as crypto prices fell on May 20, with Bitcoin (BTC) trading at around $46,000.

The lawsuit is a surprising development, as the two organizations have largely maintained a cordial relationship in public.

However, it is a significant move by Bancor, which is seeking to recover damages for patent infringement and unjust enrichment. The outcome of the lawsuit could have implications for the entire cryptocurrency and decentralized finance sectors.

The lawsuit is a reminder that even in the rapidly evolving world of cryptocurrency and blockchain technology, the fundamental principles of intellectual property law still apply.

It will also be interesting to see how Uniswap responds to the lawsuit and whether the two organizations can reach a mutually agreeable resolution.

This article will be updated to reflect any further developments in the lawsuit.

The post Bancor sues Uniswap for patent infringement appeared first on Chain Briefing.

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