Bancor Sues Uniswap Over Alleged Patent Infringement in Landmark DeFi Case

Bprotocol Foundation and LocalCoin Ltd. have initiated legal proceedings against Uniswap Labs and its foundation in a U.S. federal court. The lawsuit alleges unauthorized use of patented smart contract technology fundamental to decentralized trading platforms.

At the heart of the dispute lies Bancor’s claim to the constant product automated market Maker (CPAMM) model. The plaintiffs assert they developed this technology in 2016 and filed a provisional patent in January 2017, predating Uniswap’s implementations across its protocol versions.

The case could establish critical precedent regarding intellectual property rights in decentralized finance. Bancor maintains it pioneered the first decentralized exchange utilizing CPAMM technology, while accusing Uniswap of systematic patent violations through multiple protocol iterations.