Bancor Launches Historic Patent War Against Uniswap – Could This $40B DEX Battle Redefine DeFi IP Rights?

Bancor has initiated a landmark legal challenge against Uniswap Labs and the Uniswap Foundation, alleging patent infringement over automated market maker (AMM) technology. Filed in the U.S. District Court for the Southern District of New York, the lawsuit claims eight years of unauthorized use of Bancor’s patented systems.

The case strikes at the heart of DeFi’s open-source ethos, forcing a reckoning with intellectual property rights in a sector built on collaborative development. A ruling in Bancor’s favor could reshape how decentralized protocols innovate, monetize, and share technology.

Market participants are watching closely as the outcome may establish critical precedent for AMM-based exchanges handling billions in daily volume. The timing coincides with heightened regulatory scrutiny of DeFi business models and token governance structures.