Bancor demands Uniswap for improper use of patented technology

The dispute revolves around the invention of the model CPAMM, Employee for intelligent contracts, which is key in the development of decentralized exchanges.

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• BANK accuses UNISWAP to use its technology without permission since 2018
  
• The lawsuit was filed at a Federal Court in New York
  
• It is feared that the case has implications for the entire industry DEFI

A legal battle is coming between two heavy pesos of the ecosystem DEFI. BANCOR, pioneer in the creation of the model of Automated Market Maker (AMM), has initiated a patent violation demand against Uniswap Labs and the UNISWAP Foundation. The accusation focuses on The alleged unauthorized use of a key technology that would have been developed and recorded in 2016.

The case was presented by the BPROTOCOL FOUNTION, non -profit organization that supports the development of the protocol BANCOR, along with Localcoin ltd., The original developer. The demand was filed in the Court of the Southern District of New York, As reported on May 20 in an official statement, reviewed by several media.

What is the conflict about?

The dispute axis is the infrastructure CPAMM (Constant Product Automated Market Maker), A mechanism that allows decentralized exchanges without permission through intelligent contracts. BANK claims to have invented this model in 2016, followed by the publication of a Whitepaper and the presentation of patent applications in the USA during 2017.

According to the demand, BANK He obtained two patents that same year and launched the first decentralized exchange based on CPAMM. In contrast, UNISWAP He introduced his protocol in November 2018, allegedly using the same design without authorization or recognition.

“During the last eight years, UNISWAP has been using our patented technology in its projects without our permission.”said Mark Richardson, project leader at Bancor. “As a result, we have taken legal actions to defend our technology for the benefit of the entire defi community,” He added.

Implications for the ecosystem DEFI

The case could sit a significant precedent for intellectual development and property within the space of decentralized finances. Richardson warned that entities such as UNISWAP Use patented technologies without consequences could harm innovation in the sector.

“If companies like Uniswap can act without restrictions, we fear that it slows innovation throughout the industry, to the detriment of all defi actors,” added.

The magnitude of the case is amplified when considering that UNISWAP It is currently one of the largest and most used decentralized exchanges in the world. If the infraction is confirmed, the impact would not only fall on the defendant company, but also on users and developers that depend on their infrastructure.

UNISWAP It still does not respond

Until the time of writing of this article, UNISWAP Labs He has not issued public comments regarding the demand. As reported by the medium The Blockrequests for declaration from the journalistic team have been made without immediate response.

The lack of reaction could be related to a cautious legal strategy, given the potential scope of the conflict. If the judicial process progresses, it will be necessary to determine if effectively UNISWAP has replicated the model CPAMM of BANK and if that constitutes a patent violation under US laws.

As the case takes place in court, it will be seen if this is not only a dispute between two platforms, but a battle on the limits of open innovation in the blockchain world.

The resolution could influence how intellectual property rights are managed in decentralized technologies, a historically diffuse theme in cryptospace. It could also motivate other platforms to review their technical and legal foundations more carefully.

The debate between open source, community innovation and property rights becomes increasingly relevant as the ecosystem DEFI mature and faces regulatory and judicial challenges worldwide.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Unspash.

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