Bancor Files Lawsuit Against Uniswap for Patent Infringement
- Uniswap accused of using Bancor’s patented technology without consent.
- Lawsuit highlights intellectual property challenges in DeFi.
- Bancor seeks damages for eight years of unauthorized use.
Bancor has filed a patent infringement lawsuit against Uniswap on May 20, 2025, 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.
Bancor’s suit alleges that Uniswap has been using its patented constant product automated market maker (CPAMM) technology, a core component of DEX operations, without permission since 2018. The Bprotocol Foundation and LocalCoin Ltd., behind Bancor, emphasize safeguarding their innovations.
The case involves major crypto entities, with Bancor seeking damages from Uniswap Labs and the Uniswap Foundation for potential financial gains from patent violations. Both tokens, Bancor (BNT) and Uniswap (UNI), are at the center of these allegations.
This lawsuit may influence financial markets and the wider DeFi sector by highlighting intellectual property challenges. Patent disputes are rare in the open-source crypto ecosystem, potentially affecting protocols using similar technologies.
Potential outcomes include financial compensation for Bancor, setting precedents for future disputes involving innovative DEX frameworks. Patent validation defenses could impact regulatory landscapes and tech strategy, urging DeFi entities to rethink innovation policies.
When an organization continuously uses our invention without our authorization and does so as a means of competing with us, we must take action. For the last eight years, Uniswap has been using our patented technology in its projects without our permission. As a result, we have taken legal action to defend our technology for the good of the entire DeFi community. – Mark Richardson, Project Lead, Bancor
