Bancor sued Uniswap for eight years of infringement of AMM patents, and was counterattacked: a waste of resources

Blockbeats
Blockbeats
Original title: "Bancor sues Uniswap for eight years of AMM patent infringement, and is counterattacked: a waste of resources"
Original author: Crumax, Chain News


Bancor, a veteran DeFi protocol, recently filed a patent infringement lawsuit against decentralized exchange giant Uniswap, alleging unauthorized use of Bancor's patent-protected automated market maker (AMM) technology in 2017, which has caused widespread discussion and uproar in the community. In the face of Bancor's assertions, Uniswap countered that the lawsuit was "baseless".


Bancor sues Uniswap for unauthorized use of core AMM technology


According to The Block, the lawsuit was initiated by the Bprotocol Foundation, the nonprofit behind Bancor, and developer LocalCoin Ltd., and was filed in the U.S. District Court for the Southern District of New York on May 20. According to the complaint, Uniswap has been a decentralized trading protocol since 2018, and its core design uses the "Constant Product Automated Market Maker (CPAMM)" architecture pioneered by Bancor, but it has never been legally authorized:


Bancor invented the automated market-making model as early as 2016, published a white paper, applied for a U.S. patent in 2017, and officially launched the world's first CPAMM-based DEX (decentralized exchange) that year. According to a press release issued by Bancor, the technology has been granted two patents in the United States and is arguably one of the key cornerstones in the DeFi space.


Bancor: We are the original creator


of the automated market maker

Mark Richardson, project leader at Bancor, said that Uniswap has been using Bancor's patented technology for eight years without ever giving any compensation, so it has had to take legal action:


"When an organization continues to use our inventions to compete with us, but without authorization, we have to defend our intellectual property rights through legal means." He added, "If a company like Uniswap could use other people's technology at will, the innovation of the entire DeFi industry would be in jeopardy. This is not only for ourselves, but also for the healthy development of the entire decentralized finance ecosystem."


Uniswap Fights Back: Unfounded and a Waste of ResourcesIn


response, a spokesperson for Uniswap Labs countered: "This lawsuit is baseless, and we will do our best to defend ourselves." He pointed out that since the release of the Uniswap protocol, the code has been completely open source, and it has been reviewed and verified by the community for a long time, and there is no infringement issue:


"At a time when DeFi is reaching a historic peak, such a lawsuit is just a waste of resources and attention." Uniswap founder Hayden Adams even joked, "It's probably the stupidest thing I've ever seen."


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