Bancor sues Uniswap for patent infringement, accusing it of unauthorized use of DEX smart contract technology

Bancor's developers have filed a patent infringement lawsuit against Uniswap Labs and the Uniswap Foundation, accusing them of unauthorized use of Bancor's decentralized exchange (DEX) smart contract technology. The lawsuit was jointly initiated by the non-profit Bprotocol Foundation, which supports the development of the Bancor protocol, and Bancor's original developer, LocalCoin Ltd. The case is being heard in the United States District Court for the Southern District of New York. Bancor invented the Constant Product Automated Market Maker (CPAMM) model in 2016 and applied for a US patent in 2017, subsequently launching the first DEX based on the CPAMM model. The lawsuit alleges that Uniswap's protocol, launched in November 2018, used the same CPAMM design without authorization and gained significant profits by deploying this intellectual property. Bancor project lead Mark Richardson stated that Uniswap has been using their patented technology without permission for eight consecutive years, and Bancor is taking legal action to protect its technological rights and safeguard the interests of the entire DeFi community. Richardson also expressed concern that if companies like Uniswap remain unchecked, it could hinder industry innovation and harm the interests of all DeFi participants.