A federal judge dismissed a patent lawsuit against Uniswap Labs on Tuesday. District Judge John Koeltl granted the motion, as shown in court documents.
The complaint targeted code used in Uniswap’s 2018 protocol tied to a constant product automated market maker. Bprotocol Foundation and LocalCoin Ltd. said the code matched patented infrastructure despite an earlier open-source release.
The court found Bancor’s patents claimed abstract economic ideas and were therefore ineligible under US patent law. The judge said the patents described general exchange concepts rather than concrete technological inventions.
“This case is a win for DeFi by protecting developers’ ability to build on and improve what came before without patent trolls claiming ownership of centuries-old economic concepts,” the post shows.
Records show True Return Systems sued MakerDAO and Compound in 2022 over oracle patents. Critics called TRS a patent troll, as noted by the EFF, and the suits were dismissed after the DeFi Education Fund bought the patent, as reported.
The protocol’s UNI token jumped roughly 30%. BlackRock said it bought UNI and was working with the exchange.
