Latest news with #Bancor
Coin Geek
26-05-2025
- Business
- Coin Geek
Uniswap sued by patent holders over DeFi technology
Getting your Trinity Audio player ready... The developer behind decentralized exchange Bancor has claimed IP rights over the core technology underpinning the entire DeFi industry in a new suit aimed at fellow decentralized Uniswap. The lawsuit, filed in New York by the entities that own Bancor, claims to own two patents that the plaintiffs say were the first smart contract designs which could 'allow any buyer or seller to transact in a liquid and reliable manner' in a decentralized environment. As a result, the lawsuit alleges that Uniswap—the second-largest decentralized exchange and seventh-largest exchange overall by volume—is infringing their intellectual property rights on a massive scale. 'The invention replaced the order books and market makers of centralized exchanges with a novel system of smart contracts that acts as an 'automatic market maker' for decentralized platforms. 'The solution – one of the most important innovations in crypto – is now widely used, including most prominently at the core of the Uniswap Protocol.' The patents are U.S. patent numbers 11107049 and 11574291, both titled 'Methods for exchanging and evaluating virtual currency.' According to Bancor, the patents describe a solution to the challenges of creating a decentralized exchange, particularly about their ability to determine the value of assets without a middleman. As the lawsuit describes: ''Traditionally, value of a currency is determined by the price of a transaction between willing parties,' but 'employing this method on an unlimited variety of token types is not viable… In addition, many freshly issued Token types have only a limited trading volume or none at all,' which 'will increase the difficulties entailed in evaluating an unlimited variety of Token types via a FOREX method.'' 'The asserted patents then introduce the implementation of a CPAMM [constant product automatic market maker] using smart contracts and explain that 'the inventive method allows determining a Token's value without reliance on a transaction between two willing parties' as conventionally performed by centralized exchanges.' The patents are dated to 2021, but the plaintiffs say the invention was made in 2016. Provisional patents were filed in 2017 while the solution was presented to the public at the Community Ethereum Development Conference in February 2017. The suit also says that Ethereum Founder Vitalik Buterin—who is not listed as a defendant in the suit—communicated and supported Uniswap's adoption of the invention, with Bancor claiming that the idea was pitched to (and rejected by) Buterin in 2017. Not wanting to move his ecosystem's focus away from ETH, Buterin instead began working with Hayden Adams, founder of Uniswap, to make a competing decentralized exchange using the same invention. Thus, Uniswap was born. Bancor is seeking injunctions against Uniswap and treble damages on the basis that Uniswap's conduct was 'willful' and 'egregious.' 'Since developing this technology, Bancor's mission has always been the same: to bring innovative inventions to DeFi that push the boundaries of what's possible,' Bancor said in a statement. 'However, 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.' On X, Adams called the suit 'possibly the dumbest thing' he's ever seen. Watch: Bringing the Metanet to life with Teranode title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen>
Yahoo
20-05-2025
- Business
- Yahoo
Bancor files patent infringement lawsuit against Uniswap
On May 20, the Bprotocol Foundation and LocalCoin filed a lawsuit in the U.S. District Court for the Southern District of New York against Uniswap Labs and the Uniswap Foundation, accusing them of unlicensed use of patented technology that underpins automated trading on decentralized exchanges (DEXs). Bprotocol Foundation is a nonprofit known for supporting the development of the Bancor protocol, while LocalCoin is the original developer behind Bancor. Both firms claim that Uniswap has been infringing on Bancor's intellectual property for years. The lawsuit centers around key elements of decentralized trading — specifically, smart contract structures that power what's known as the constant product automated market maker, or CPAMM, the same mechanism that drives Uniswap's core functionality. Bancor says it first created this technology in 2016 and filed a provisional patent for it on January 8, 2017. The team then built the Bancor Protocol — widely considered to be the first decentralized exchange built entirely on automated market makers. 'Bancor's patented technology is one of the most important innovations in blockchain, and we are exceptionally proud of the role it has played in revolutionizing the world of decentralized finance,' said Mark Richardson, project lead at Bancor. 'However, when an organization continuously uses our invention without our authorization and does so as a means of competing with us, we must take action,' Richardson continued. '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.' The plaintiffs are seeking damages, claiming that Uniswap's alleged unauthorized use of the patented CPAMM tech gave it an unfair competitive edge while ignoring the foundational work done by Bancor. Both Bancor and Uniswap are well-known DEXs that allow users to trade crypto assets directly from their wallets — without the need for centralized exchanges like Coinbase or Binance. TheStreet Roundtable has reached out to Uniswap for comment and will update this story when a response is received.
Business Wire
20-05-2025
- Business
- Business Wire
Bancor Files Patent Infringement Lawsuit Against Uniswap Over Unlicensed Use of Foundational Technology Behind Decentralized Exchanges
ZUG, Switzerland--(BUSINESS WIRE)--Bprotocol Foundation, a non-profit foundation dedicated to promoting the development and adoption of the Bancor Protocol, and LocalCoin Ltd. ('LocalCoin'), the original developer of the Bancor Protocol, today announced that they have filed a lawsuit in the United States District Court for the Southern District of New York (the 'Court') against Uniswap Labs and Uniswap Foundation (collectively, 'Uniswap') for infringing Bancor patents directed to smart contract structures and technologies that enable decentralized trading. Bprotocol Foundation and LocalCoin are seeking damages for Uniswap's unauthorized use of their patented technology, which is the fundamental technology that underlies the constant product automated market maker ('CPAMM') powering the Uniswap Protocol. Invented in 2016, Bancor's revolutionary technology was designed to replace the traditional order books and market makers of centralized exchanges using a smart contract structure that acts as an 'automated market maker' for decentralized platforms. Bancor filed a patent application for the technology on January 8, 2017, and used the smart contract structure to build the Bancor Protocol, the first fully decentralized exchange powered by automated market makers. Mark Richardson, Project Lead at Bancor, commented: 'Bancor's patented technology is one of the most important innovations in blockchain, and we are exceptionally proud of the role it has played in revolutionizing the world of decentralized finance. By making decentralized exchanges a reality, Bancor's invention has forever changed how cryptocurrencies are traded. Since developing this technology, Bancor's mission has always been the same: to bring innovative inventions to DeFi that push the boundaries of what's possible. However, 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. As innovators and inventors, protecting our intellectual property is fundamental to the health of the ecosystem. If companies like Uniswap can act unchecked without consequence, we fear it will hinder innovation across the industry to the detriment of all DeFi players.' Key Facts: In 2016, Bancor invented the smart contract structures that enable buyers and sellers to transact in a liquid and reliable manner without the need for a centralized intermediary. On January 8, 2017, Bancor filed a provisional patent application describing its innovative technology and associated smart contract structures employing such technology. The application was filed with the U.S. Patent Office and subsequently led to two issued patents. Bprotocol Foundation and LocalCoin own all rights related to the invention, and Bancor released a white paper explaining the invention in February 2017. The Bancor Protocol was built using the invention and launched on June 12, 2017. It was the first fully decentralized exchange (DEX) powered by automated market makers, specifically the first implementation that has come to be known as CPAMM. Uniswap Labs later used the patented invention to create its own competing protocol – the Uniswap Protocol. In November 2018, Uniswap Labs launched v1 of the Uniswap Protocol and has continually operated an infringing CPAMM via the Uniswap Interface since that time, most recently announcing the launch of v4 of the Uniswap Protocol. Uniswap Labs has used the patented invention without authorization, license or partnership from Bprotocol Foundation or LocalCoin, and has profited greatly. With this lawsuit, Bprotocol Foundation and LocalCoin seek compensation for Uniswap Labs' unlicensed use of Bancor's patented technology and Uniswap Foundation's inducement of infringement. About Bancor Bancor has always been at the forefront of DeFi innovation, beginning in 2017 with the invention of bonding curves, pool tokens, and the exchange systems which emerge therefrom. Bancor revolutionized the world of DeFi by launching the Bancor Protocol, the first fully decentralized exchange powered by automated market makers. Learn more at About Bprotocol Foundation Bprotocol Foundation is a non-profit organization dedicated to promoting the development and adoption of the Bancor Protocol. Founded in 2017, the foundation has a mandate to safeguard the Bancor community and its interests. About LocalCoin LocalCoin is a digital asset laboratory and software development company building innovative products ranging from blockchain infrastructure to fully integrated consumer applications. It is the original developer of the Bancor Protocol.
