The team behind the Xai project, the L3 gaming blockchain, has filed a lawsuit against xAI, owned by billionaire Elon Musk. The latter is accused of trademark infringement and unfair competition.
The lawsuit is backed by Ex Populus, which partnered with the Xai Foundation back in July 2023. The studio became the first game provider on this blockchain and is closely tied to the project.
The complaint claims that xAI has created confusion in the market, thereby harming the Xai brand. The situation only worsened after Musk announced plans to create a gaming studio in November 2024.
The lawsuit outlines examples of instances where Musk's company and himself were mistakenly associated with Xai, its products, and services. In particular, such an assumption was even made by the Grok chatbot, developed by xAI.
Ex Populus claims that the Xai team has faced 'significant negative sentiment' due to Musk's image and actions. The alleged damage goes beyond lost business reputation, explaining the need for court intervention.
Also, xAI's lawyers allegedly pressured the Xai parties behind the blockchain to abandon trademark rights, according to the lawsuit. Meanwhile, the U.S. Patent and Trademark Office allegedly suspended several of Musk's company's applications precisely due to this confusion.
Ex Populus is seeking a court injunction against xAI for further attempts to infringe trademark rights and for damages.
