The Ethereum-based XAI gaming network has accused Elon Musk's AI startup xAI of trademark infringement and unfair competition.
According to documents filed in the Federal District Court for the Northern District of California, the billionaire's project created mass confusion in the market, damaging the XAI brand.
The parent company of the gaming protocol Ex Populus stated that it has been using the trademark "XAI" since June 2023 - this was the name of the protocol and token.
Musk announced his xAI in July of the same year. The lawsuit provides evidence in the form of screenshots from social networks and websites.
"The huge user base and market influence that the defendants possessed led to massive consumer confusion regarding the connection of Musk and his company with the plaintiff and the XAI brand," the documents say.
At the same time, the confusion was exacerbated when xAI announced plans to launch a gaming studio in 2024.
As proof, the prosecution attached a post from the Binance forum in which a user had to explain the difference between the projects.
Ex Populus representatives claim that the damage goes beyond lost business reputation. XAI has faced "serious negative consumer sentiment" due to Musk's ambiguous image and scandals surrounding xAI products.
In addition, the businessman's legal team tried to put pressure on Ex Populus to force it to relinquish its rights, threatening to cancel the registration in the United States, the lawsuit says.
The U.S. Patent and Trademark Office has already suspended several registration applications from xAI.
Ex Populus seeks a complete cancellation of the firm's pending copyright claims, damages for infringement, and a court order prohibiting Musk's company from using the disputed name.
In August, journalists learned that xAI's Grok chatbot had published hundreds of thousands of dialogues with users on Google and other search resources.
