Bancor Sues Uniswap Over Patent Infringement

Bancor has filed a lawsuit against Uniswap, alleging that the decentralized exchange infringed on its patents related to smart contract-based decentralized

Decentralized exchange Uniswap is being sued by another exchange, Bancor, for allegedly infringing on its patents, reports The Block. According to the report, the lawsuit was filed on Monday, December 12 in the U.S. District Court for the Northern District of California.

The complaint claims that Uniswap has been using Bancor’s patented technology for an automated market maker (AMM) without permission since 2018. It is alleged that Uniswap copied the technology in creating its own exchange and its core liquidity protocol.

The suit comes after a turbulent year for both exchanges. Uniswap raised a $120 million Series C in December to take its total valuation to $1 billion. The exchange also dropped plans for a 2022 public listing.

Meanwhile, Bancor has been shifting its focus to building out its own ecosystem. The exchange launched its own native token, BNC, in 2017 and has since expanded to offer a range of DeFi products and services.

The lawsuit could have major implications for the future of DeFi. If Bancor is successful in proving that Uniswap infringed on its patents, it could set a dangerous precedent for other DeFi projects. It is still early days in the development of the DeFi sector and there are still many unanswered questions about the ownership and use of intellectual property.

This case is likely to be closely watched by the entire crypto industry. It could have a significant impact on how decentralized exchanges operate in the future.