Ethereum-based gaming community Xai has filed a lawsuit towards Elon Musk’s synthetic intelligence firm xAI, accusing it of trademark infringement and unfair competitors.
The criticism, lodged within the Northern District of California on Thursday, claims Musk’s xAI firm has created widespread market confusion, damaging Xai’s model.
Ex Populus, the Delaware company behind Xai, mentioned it has used the XAI trademark in US commerce since June 2023, together with via its blockchain gaming ecosystem and the $XAI token. “It is a basic case of trademark infringement that requires the Courtroom’s intervention to treatment,” the submitting mentioned.
Ex Populus operates the Xai ecosystem, which features a blockchain-powered community designed for video gaming and digital transactions, providing infrastructure to help sport logic, AI-driven selections, rewards and knowledge administration throughout a number of purposes, per the submitting.
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xAI gaming studio triggers additional confusion
The criticism alleges that confusion started after Musk introduced his firm, xAI, in July 2023 and deepened when he mentioned in November 2024 that xAI deliberate to launch a gaming studio.
The submitting states that “market confusion abounded as as to whether Defendants/Musk have been related to, owned, or sponsored Plaintiff’s XAI Trademark or the related items and companies.” It cited examples of shoppers, publications and even Musk’s AI assistant Grok incorrectly linking the 2 ventures.
Ex Populus argued that the reputational hurt goes past misplaced goodwill. The criticism says Xai has confronted “important adverse shopper sentiment” resulting from Musk’s polarizing public picture and controversies involving xAI merchandise.
“Plaintiff just isn’t solely being irreparably harmed by the lack of management over its hard-earned goodwill in its XAI Trademark… but additionally Plaintiff is broken as a result of the complicated affiliation with Elon Musk is leading to important adverse shopper sentiment,” the submitting notes.
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Musk’s group pressured Xai over trademark rights
The submitting accuses Musk’s authorized group of attempting to strain Ex Populus into relinquishing rights by threatening cancellation of its registration earlier this month.
The lawsuit additionally talked about that the US Patent and Trademark Workplace has already suspended a number of of Musk’s xAI trademark purposes resulting from a chance of confusion with Xai’s present mark.
Ex Populus is searching for cancellation of xAI’s pending purposes, damages for infringement, and a courtroom order to forestall Musk’s firm from utilizing the disputed identify in gaming and blockchain contexts. “There is no such thing as a treatment at regulation for the sheer magnitude of hurt Defendants have triggered,” the corporate informed the courtroom.
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