Bancor has filed a lawsuit against Uniswap Labs, accusing the DeFi giant of patent infringement over core decentralized exchange (DEX) technology. The legal action, announced on May 20, alleges that Uniswap used Bancor’s patented “constant product automated market maker” model without authorization. Bancor says it invented the technology in 2016 and secured patents for it in 2017.

According to the lawsuit filed in the U.S. District Court for the Southern District of New York, Bancor claims that Uniswap built its protocol—which launched in 2018—on this patented mechanism, allowing users to add or remove liquidity using mathematical formulas. The plaintiffs, Bprotocol Foundation and LocalCoin Ltd., are seeking damages for what they call unlicensed use and inducement of patent infringement by Uniswap and its foundation.

Mark Richardson, Bancor’s project lead, emphasized that companies cannot continue to use others’ patented inventions to compete in the market. He warned that unchecked behavior like this threatens broader innovation in decentralized finance.

Uniswap Labs dismissed the claims, calling the lawsuit “meritless” and describing it as a “wasteful distraction.” The company highlighted that its code has always been publicly available.

Despite the legal tension, Uniswap remains a dominant player in DeFi. As of May 20, it ranked second in global DEX trading volume with $3.8 billion traded in 24 hours. Bancor, by contrast, ranked 142nd with just $378,579. Since its inception, Uniswap has processed $2.8 trillion in trades.

The case marks a major moment in the ongoing battle over intellectual property in the fast-evolving DeFi space.