A federal judge in New York has dismissed a patent infringement lawsuit filed by Bancor-affiliated entities against Uniswap, finding that the patents in question claim abstract ideas that are not eligible for protection under US law.
In a Feb. 10 memorandum opinion, Judge John G. Koeltl of the US District Court for the Southern District of New York granted Uniswap’s motion to dismiss the complaint brought by Bprotocol Foundation and LocalCoin Ltd. The court concluded that the patents relate to the abstract concept of calculating cryptocurrency exchange rates, failing the Supreme Court’s two-step test for patent eligibility.
Uniswap founder Hayden Adams wrote on X;
The dispute centered on technology underlying automated market makers, specifically the constant product formula used to price tokens and manage liquidity pools in decentralized exchanges. The judge ruled that implementing such formulas on blockchain infrastructure does not transform an abstract economic principle into a patentable invention.
Case Dismissed Without Prejudice, Amendment Window Open
While the ruling marks an early procedural victory for Uniswap, the dismissal was issued without prejudice. Plaintiffs have 21 days to file an amended complaint. If they do not, the dismissal will become final.
The court also determined that the complaint failed to adequately allege direct, induced or willful infringement, citing insufficient detail regarding how Uniswap’s code met the patents’ specific technical requirements.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.