Ethereum-based gaming community Xai has filed a lawsuit in opposition to Elon Musk’s synthetic intelligence firm xAI, accusing it of trademark infringement and unfair competitors.
The complaint, lodged within the Northern District of California on Thursday, claims Musk’s xAI company 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 by means of its blockchain gaming ecosystem and the $XAI token. “It is a traditional case of trademark infringement that requires the Court docket’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 choices, 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 announced his company, 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 had been related to, owned, or sponsored Plaintiff’s XAI Trademark or the related items and companies.” It cited examples of customers, 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 “vital damaging client sentiment” attributable to Musk’s polarizing public picture and controversies involving xAI merchandise.
“Plaintiff is just not 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 vital damaging client sentiment,” the submitting notes.
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Musk’s staff pressured Xai over trademark rights
The submitting accuses Musk’s authorized staff of making an attempt to stress 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 attributable to a chance of confusion with Xai’s present mark.
Ex Populus is in search of cancellation of xAI’s pending purposes, damages for infringement, and a courtroom order to stop Musk’s firm from utilizing the disputed title in gaming and blockchain contexts. “There isn’t any treatment at legislation for the sheer magnitude of hurt Defendants have induced,” the corporate informed the courtroom.
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