Ex Populus Sues Elon Musk’s xAI for Trademark Infringement, Token Fa

Ex Populus sues xAI for trademark infringement and unfair competition Ex Populus, an Ethereum-based gaming company...

Quick overview

  • Ex Populus has filed a lawsuit against xAI for trademark infringement and unfair competition due to brand confusion over their similar names.
  • The lawsuit claims that xAI's use of the name undermines Ex Populus' presence in the blockchain gaming space, where they launched their Xai platform in 2023.
  • The legal action has already affected the market, causing a 5.16% drop in the xAI token's value following the announcement.
  • Ex Populus emphasizes the importance of protecting their trademark to maintain trust within their community amidst growing confusion.

Ex Populus sues xAI for trademark infringement and unfair competition

Ex Populus, an Ethereum-based gaming company, has filed a lawsuit against xAI, Elon Musk’s AI startup, for trademark infringement and unfair competition. The dispute is about brand confusion as Ex Populus has a gaming platform called Xai launched in 2023 and xAI, publicly announced in July 2023, has the almost identical name.

Ex Populus claims to have trademarked Xai in June 2023 and says that xAI’s continued use of the name undermines their presence in the blockchain gaming space. They announced the lawsuit on their community forum and X (formerly Twitter), “With more confusion around Elon Musk’s AI company, it’s big responsibility to protect the brand that the community trusts.”

Founded in 2021, Ex Populus develops blockchain games and tools for developers in the Ethereum ecosystem. Their Xai platform provides AI-driven gaming solutions and autonomous software systems, so the overlap with xAI’s name is particularly problematic.

Market Confusion Amplifies Legal Dispute

The lawsuit highlights several instances of brand misidentification. xAI’s July 2023 announcement reached over 36 million views and many of those viewers thought the brand was Ex Populus’ gaming network. Even X’s AI assistant, Grok, labeled Ex Populus’ platform as being related to xAI.

According to the filing, the lawsuit is based on:

  • Common law trademark infringement.
  • Unfair competition and false designation of origin.
  • Unfair business practices causing reputational harm.

The company says that consumers in the gaming and AI space “instantly started confusing Plaintiff with xAI’s company,” causing significant market and brand disruption.

xAI Token Drops After Lawsuit News

The lawsuit is already impacting markets. After the announcement, the xAI token dropped 5.16% on August 25 to $0.0499.

XAI Price Chart - Source: Tradingview
XAI Price Chart – Source: Tradingview

Technical indicators suggest more downside:

  • RSI is at 36.89, near oversold.
  • Support is at $0.047-$0.048.
  • Bearish momentum is strong but a short term bounce could happen if buying increases.

Anyway, protecting the trademark is big for Ex Populus to protect their brand in this wild Web3 and AI gaming world.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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