Uniswap wins CPAMM patent infringement lawsuit against Bancor

Uniswap has won a patent infringement lawsuit filed by organizations connected to Bancor, marking a major legal victory for the decentralized exchange and the wider decentralized finance sector.

On Feb. 11, Uniswap founder Hayden Adams said on X that his legal team had informed him of the court’s decision in Uniswap’s favor. The case had challenged the technology that powers automated token trading on the platform.

Many people in the crypto world paid close attention to the lawsuit because it brought up a bigger issue. It questioned whether simple trading formulas used in DeFi can actually be protected by patents.

Lawsuit focused on AMM technology

The legal fight started in May 2025. Bprotocol Foundation and LocalCoin Ltd., both connected to Bancor, filed a lawsuit in a federal court in New York. They claimed that Uniswap Labs and the Uniswap Foundation used a trading method that was covered by a patent granted back in 2017.

The patent covered the constant product automated market maker model, commonly known for the formula x*y=k. This system is used to price tokens in liquidity pools and has become a foundation of many decentralized exchanges.

Bancor argued that Uniswap (UNI) had relied on this patented method since launching in 2018 without permission. The plaintiffs sought financial damages for several years of alleged unauthorized use.

Uniswap strongly rejected the claims from the start. The company said its code had always been open-source and publicly available. It also argued that the patent attempted to claim ownership over basic mathematical principles applied to blockchain systems.

Several industry groups supported Uniswap’s position. Organizations such as the DeFi Education Fund and the Solana Institute filed statements backing the exchange and warning against using patents to restrict open innovation.

Impact on DeFi and open-source development

According to people familiar with the case, the court found that the allegations did not meet the legal standard required for patent infringement, especially given the open nature of Uniswap’s software.

Legal experts say the ruling sends a strong message to the market. Core financial mechanisms that rely on simple formulas may be difficult to protect through patents when they are openly shared and widely adopted.

Many developers see this outcome as a strong moment for open finance. It sends a message that the basic tools behind DeFi cannot easily be restricted or put behind paywalls through patents.

Uniswap users and its partners can also breathe a little easier. The uncertainty surrounding the case had raised concerns about possible setbacks. If the court had ruled differently, it might have slowed down new features and partnerships across the wider ecosystem.

So far, there has been no word of an appeal. For now, the matter seems to be settled at the district court stage.