A New York federal judge has dismissed a patent lawsuit against Uniswap. The case, brought by entities affiliated with Bancor, alleged Uniswap infringed patents for a decentralized exchange system. Judge John G. Koeltl ruled the patents claim the abstract idea of calculating crypto exchange rates and are not eligible for protection. The dismissal is without prejudice, giving the plaintiffs 21 days to file an amended complaint. Uniswap founder Hayden Adams celebrated the procedural win on social media.
A federal judge has dismissed a patent infringement lawsuit against the decentralized exchange Uniswap. The ruling grants a motion to dismiss the complaint filed by Bprotocol Foundation and LocalCoin Ltd. against Universal Navigation Inc. and the Uniswap Foundation.
Judge John G. Koeltl found the patents are directed to the abstract idea of calculating currency exchange rates. He stated currency exchange is a fundamental economic practice, making the claims ineligible under U.S. patent law.
The court determined the patents merely use existing blockchain technology in predictable ways. Implementing the idea on a blockchain did not provide a patent-eligible inventive concept.
The complaint also failed to plausibly allege direct infringement by Uniswap. The judge noted it did not identify how Uniswap’s code includes a specific reserve ratio constant from the patents.
Claims of induced and willful infringement were dismissed as well. The court found no plausible allegation that the defendants knew about the patents before the lawsuit.
Shortly after the ruling, Uniswap founder Hayden Adams wrote on X, “A lawyer just told me we won.” The dismissal is without prejudice, allowing the plaintiffs 21 days to file an amended complaint.
