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Uniswap Beats Bancor Claims as Judge Calls Patents Too Abstract

Key Takeaways

  • A New York judge ends Bancor’s patent case after finding the disputed claims too abstract to qualify for US patent protection;
  • The court states that exchange-rate calculations are routine economic ideas and cannot support the patents asserted against Uniswap;
  • Bancor’s argument about blockchain use fails, as the judge says known tools do not turn an abstract method into a patent-eligible claim.

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Uniswap Beats Bancor Claims as Judge Calls Patents Too Abstract

Uniswap $737.13M gained an advantage in its legal dispute after a federal judge in New York dismissed a patent case brought by entities linked to Bancor.

The judge decided that the patents in question are too abstract to receive protection under US patent law.

The order came from Judge John G. Koeltl of the US District Court for the Southern District of New York on February 10. He approved Uniswap’s request to end the lawsuit filed by Bprotocol Foundation and LocalCoin Ltd. against Universal Navigation Inc. and the Uniswap Foundation.

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According to the ruling, the patents focus on the basic concept of calculating cryptocurrency exchange rates. Under the two-step test set by the US Supreme Court, this type of claim cannot qualify for patent protection.

Koeltl explained that calculating exchange rates is a common economic activity and that pricing calculations are considered abstract under existing federal case law.

Bancor had argued that Uniswap used protected technology tied to a “constant product automated market maker". This system supports features used in decentralized exchanges, such as automated pricing and liquidity pools.

The dispute centered on whether Uniswap’s protocol relied on methods that Bancor claimed were patented.

The judge rejected arguments that placing the calculation method on a blockchain made the patents valid. He said the filings rely on known blockchain and smart contract tools in expected ways to solve an economic issue.

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Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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