Uniswap Surges on Court Ruling

Uniswap Labs has secured an important legal victory after a federal judge in the Southern District of New York dismissed a patent infringement lawsuit brought by entities affiliated with Bancor.

The case centered on allegations that Uniswap’s automated market maker (AMM) protocol infringed patents related to decentralized liquidity formulas. The plaintiffs claimed that Uniswap’s smart contract-based exchange architecture violated intellectual property protections tied to algorithmic pricing mechanisms.

Uniswap Scores Key Legal Win as NY Federal Court Dismisses Bancor Patent Lawsuit

The judge granted Uniswap’s motion to dismiss the complaint, finding that:

• The patent claims were directed at abstract ideas under U.S. patent law.

• The complaint failed to plausibly allege infringement in a legally sufficient way.

• The patents, as applied to smart contracts, did not meet the standard for patent-eligible subject matter.

Importantly, the dismissal was without prejudice. This means the plaintiffs are allowed to amend their complaint and potentially refile within a limited time frame.

So while Uniswap did not receive a final judgment permanently ending all legal exposure, it achieved a procedural and substantive victory at this stage of litigation.

Why This Matters for DeFi

This ruling is significant beyond Uniswap:

1. Patentability of DeFi mechanisms is under scrutiny. Courts are increasingly skeptical of broad claims over financial logic implemented in software.

2. AMM design may not be easily monopolized via patents. If abstract algorithmic formulas cannot be patented in this context, it reduces risk for other decentralized exchanges.

3. Regulatory and legal overhang continues to ease. Uniswap has already faced SEC scrutiny in prior matters, and this dismissal removes another near-term uncertainty.

Market Reaction

Following news of the dismissal, UNI token saw upward momentum, rising to $4.60, as traders interpreted the development as a reduction in legal risk. Legal clarity — even partial — often acts as a catalyst in crypto markets.

What Happens Next?

The plaintiffs may attempt to file an amended complaint. If they do not, the dismissal could effectively close this chapter. If they refile, the case could continue, though they would need to address the deficiencies identified by the court.

For now, Uniswap can legitimately describe the ruling as a win — but not necessarily the final word.

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