The Ethereum-based gaming network Xai has filed a lawsuit against Elon Musk's artificial intelligence company xAI, accusing it of trademark infringement and unfair competition.
The complaint, submitted on Thursday in the Northern District of California, claims that Musk's xAI company has caused widespread market confusion, damaging Xai's brand.
Ex Populus, the Delaware company behind Xai, states that it has been using the XAI trademark in U.S. commerce since June 2023, including through its blockchain gaming ecosystem and the $XAI token. "This is a classic case of trademark infringement that requires court intervention to resolve," the complaint states.
According to the complaint, Ex Populus operates the Xai ecosystem, which includes a blockchain-driven network designed specifically for video games and digital transactions, providing infrastructure to support game logic, AI-driven decision-making, rewards, and data management across multiple applications.
The complaint alleges that confusion began after Musk announced his company xAI in July 2023, and it deepened when he stated in November 2024 that xAI planned to launch a gaming studio.
"The market has experienced significant confusion, and it is unclear whether the defendant/Musk is associated with, owns, or sponsors the plaintiff's XAI trademark or related goods and services." It cites examples of consumers, publications, and even Musk's AI assistant Grok mistakenly linking the two companies.
Ex Populus believes that the reputational damage goes beyond the loss of goodwill. The complaint states that due to Musk's polarizing public image and controversies surrounding xAI products, Xai faces "significant negative consumer sentiment."
"The plaintiff has suffered irreparable harm not only from losing control over its hard-earned goodwill in the XAI trademark… but also from significant negative consumer sentiment caused by the confusing association with Elon Musk," the complaint notes.
The complaint accuses Musk's legal team of attempting to force Ex Populus to abandon its rights by threatening to cancel its registration earlier this month.
The lawsuit also mentions that the U.S. Patent and Trademark Office has suspended several trademark applications for Musk's xAI due to potential confusion with Xai's existing trademarks.
Ex Populus seeks the cancellation of xAI's pending applications, damages for infringement, and a court order to prevent Musk's company from using the disputed name in gaming and blockchain contexts. "There is no legal remedy for the immense damage caused by the defendant," the company told the court.
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Original: “Ethereum gaming network Xai sues Musk's xAI for trademark infringement”
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