A New York federal judge has dismissed a patent infringement lawsuit brought by Bancor-affiliated entities against Uniswap, ruling that the asserted patents claim abstract ideas and are not eligible for protection under US law.
Judge John G. Koeltl of the US District Court for the Southern District of New York granted Uniswap’s motion to dismiss the complaint filed by Bprotocol Foundation and LocalCoin Ltd., finding the patents failed the Supreme Court’s two-step test for patent eligibility.
The court determined the patents were directed to “the abstract idea of calculating currency exchange rates to perform transactions,” describing currency exchange as a fundamental economic practice that cannot be patented merely by implementing it on blockchain infrastructure.
Koeltl rejected arguments that using blockchain and smart contracts rendered the claims patentable, stating the patents relied on existing technology in predictable ways and lacked an inventive concept sufficient to transform the abstract idea into a patent-eligible application.
Beyond eligibility, the judge found the amended complaint did not plausibly allege direct, induced or wilful infringement, noting plaintiffs failed to show how Uniswap’s publicly available code included the required reserve ratio constant, and following the ruling the Uniswap token was unchanged at $XX.
The case was dismissed without prejudice, giving the plaintiffs 21 days to file an amended complaint before the dismissal becomes final.
Shortly after the decision, Uniswap founder, Hayden Adams wrote on X:
“A lawyer just told me we won,”
As the procedural victory leaves open the possibility of a revised filing by Bprotocol Foundation and LocalCoin Ltd.
At the time of reporting, Uniswap price was $3.41.