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 grievance, 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, stated it has used the XAI trademark in US commerce since June 2023, together with by way of 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 stated.
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 functions, per the submitting.
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xAI gaming studio triggers additional confusion
The grievance alleges that confusion started after Musk introduced his firm, xAI, in July 2023 and deepened when he stated 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 providers.” 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 grievance says Xai has confronted “vital detrimental client sentiment” as a result of Musk’s polarizing public picture and controversies involving xAI merchandise.
“Plaintiff shouldn’t be solely being irreparably harmed by the lack of management over its hard-earned goodwill in its XAI Trademark… but in addition Plaintiff is broken as a result of the complicated affiliation with Elon Musk is leading to vital detrimental 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 attempting 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 functions as a result of a probability of confusion with Xai’s present mark.
Ex Populus is searching for cancellation of xAI’s pending functions, damages for infringement, and a court docket order to forestall Musk’s firm from utilizing the disputed title in gaming and blockchain contexts. “There is no such thing as a treatment at regulation for the sheer magnitude of hurt Defendants have prompted,” the corporate advised the court docket.
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