Uniswap has won a patent infringement lawsuit filed by entities affiliated with Bancor, marking a major legal victory for the decentralized exchange and financial sector.
Summary
- Uniswap won a patent infringement lawsuit filed by Bancor-related businesses in US federal court.
- The case focuses on the fixed product market maker formula used in decentralized trading.
- The ruling supports open source development and limits copyright claims over core DeFi tools.
On February 11, Uniswap founder Hayden Adams said to X that his legal team informed him of the court’s decision in favor of Uniswap. The case challenged the technology that enables automated token trading on the platform.
Many people in the crypto world have paid close attention to this case because it has brought a big issue. It asked whether simple trading formulas used in DeFi could be protected by patents.
The case focuses on AMM technology
The legal battle began in May 2025. The Bprotocol Foundation and LocalCoin Ltd., both affiliated with Bancor, filed a lawsuit in federal court in New York. They claim that Uniswap Labs and the Uniswap Foundation are using a trading method that was covered by a patent granted back in 2017.
The patent covered the automatic market maker’s model for a constant product, best known by the formula x*y=k. This system is used to price tokens in pools of liquidity and has become the basis of many decentralized exchanges.
Bancor argued that Uniswap (UNI) had been relying on this patented method since it was launched in 2018 without permission. The plaintiffs are seeking monetary damages for several years of alleged unauthorized use.
Uniswap has denied the claims from the outset. The company said its code has always been open source and publicly available. It also argued that the patent sought to claim ownership over the underlying mathematical principles used in blockchain systems.
Several industry groups supported Uniswap’s position. Organizations such as the DeFi Education Fund and the Solana Institute have filed statements supporting the exchange and warning against using patents to limit innovation.
Impact on DeFi and open source development
According to people familiar with the case, the court found that the allegations do not meet the legal standard required for copyright infringement, especially given the openness of Uniswap’s software.
Legal experts say the decision sends a strong message to the market. Mainstream financial methods that rely on simple formulas may be difficult to protect through patents when they are freely shared and widely accepted.
Many developers see this result as a strong moment for open finance. It sends a message that the fundamental tools behind DeFi cannot be easily restricted or placed behind paywalls through proprietary rights.
Uniswap users and its partners can also breathe easy. The uncertainty surrounding the case has raised concerns about potential complications. If the court had ruled differently, it could have slowed down new features and relationships within the wider ecosystem.
So far, there is no word of complaint. For now, the matter appears to have been settled in the district courts.
