Article Details

Uniswap Lands Early Court Win With Bancor Patent Case Thrown Out

TL;DR

• Patent Eligibility: Judge ruled Bancor‑linked patents targeted abstract ideas involving exchange‑rate calculations and were not eligible for protection.
• Procedural Outcome: Uniswap’s motion to dismiss was granted without prejudice, giving plaintiffs 21 days to amend before the dismissal becomes final.
• Industry Impact: DeFi groups supported Uniswap, saying the ruling reinforces that core automated market maker formulas like x*y=k should remain open and not restricted through patents.
  

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Uniswap secured a significant procedural victory after a New York federal judge dismissed a patent infringement lawsuit brought by entities connected to Bancor. The dispute, closely watched across the decentralized finance sector, centered on whether the constant product automated market maker model could be protected under US patent law. The ruling offered clarity for developers who feared that basic pricing formulas used in liquidity pools might be restricted through intellectual property claims.

Court Rejects Patent Claims as Abstract Ideas

Judge John G. Koeltl granted Uniswap’s motion to dismiss, finding that the asserted patents targeted the abstract idea of calculating exchange rates. He ruled that applying the formula on blockchain infrastructure did not transform it into a patent‑eligible invention. The court said the claims relied on predictable uses of existing smart contract technology and lacked an inventive concept. The decision aligned with longstanding precedent that fundamental economic practices cannot be patented simply by placing them in a new technological environment.

Plaintiffs Given 21 Days to Amend

Although the dismissal marked a win for Uniswap, it was issued without prejudice. Bprotocol Foundation and LocalCoin Ltd. now have 21 days to amend their complaint before the dismissal becomes final. The judge also found that the plaintiffs failed to plausibly allege direct infringement, noting that they did not identify how Uniswap’s publicly available code contained the specific reserve ratio constant described in the patents. Claims of induced and willful infringement were also rejected due to insufficient allegations of prior knowledge.

Industry Groups Back Open‑Source Innovation

The case drew strong reactions from across the DeFi ecosystem. Organizations such as the DeFi Education Fund and the Solana Institute supported Uniswap’s stance, warning that allowing patents on simple trading formulas could hinder open innovation. Many developers viewed the ruling as a reaffirmation that foundational mechanisms like x*y=k should remain accessible to the public.

A lawyer just told me we won https://t.co/IakITk0F3Q

— Hayden Adams (@haydenzadams) February 11, 2026

Uniswap founder Hayden Adams shared the news on X, saying he had been informed of the win by his legal team. The outcome eased concerns among users and partners who feared potential disruptions to new features or collaborations. With no immediate indication of an appeal, the matter remains settled unless the plaintiffs choose to refile.