U.S. court dismisses Bancor's patent lawsuit against Uniswap

A federal judge in New York dismissed a patent infringement lawsuit filed by entities affiliated with Bancor against Uniswap. In the ruling on February 10, Judge John G. Koeltl stated that the patents cited only refer to an "abstract idea" of calculating cryptocurrency exchange rates, and therefore do not qualify for patent protection under U.S. patent law.

The court noted that determining prices in a transaction is a fundamental economic activity, and implementing it on blockchain or smart contracts does not transform this idea into a patentable invention. Additionally, the lawsuit failed to demonstrate that Uniswap directly used the reserve ratio constant as described in the patent, nor was there sufficient grounds to charge intentional infringement.

The case was dismissed "without prejudice," meaning Bancor has 21 days to file an amended complaint; if not, the dismissal will become final. Uniswap founder Hayden Adams later announced on X: "We won."