Bancor is suing Uniswap for patent infringement, claiming the decentralized exchange utilized its patented technology without permission, resulting in significant profit for Uniswap. Bancor developed this technology in 2016 and secured its patent in January 2017, integral to the ‘constant product automated market maker’ functionality essential for liquidity pools. Bancor states Uniswap launched its protocol in November 2018 using Bancor's invention. Mark Richardson, project lead at Bancor, emphasized the necessity of this legal action to protect their invention amidst competitive pressures. As of now, Uniswap has not publicly addressed the lawsuit, which was filed in the US District Court for the Southern District of New York. Concurrently, Bancor's market performance lags behind Uniswap, as it ranks 142nd in trading volume compared to Uniswap’s consistent top positioning, illustrating Bancor's concerns over unchecked competitors potentially stifling industry innovation.

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