Michaela
Summary: Why is Xai suing Elon Musk’s xAI?
Xai claims Musk’s xAI infringes on its trademark and creates marketplace confusion. The company argues Musk’s entry into gaming worsened the issue, with people and media mistaking the two brands as connected. Xai is seeking damages, cancellation of xAI’s applications, and a court order blocking Musk’s company from using the name in gaming and blockchain.
Ethereum-based gaming network Xai has taken legal action against Elon Musk’s AI venture, xAI, accusing the company of trademark infringement and creating confusion in the marketplace.
“This is a classic case of trademark infringement that requires the Court’s intervention to remedy,” the complaint wrote. Ex Populus, the company behind the Ethereum-based gaming network Xai, stated in its filing that it has held rights to the XAI trademark in U.S. commerce since June 2023. The trademark has been tied to both its blockchain gaming platform and the XAI token.
The company argues that Musk’s xAI has fueled marketplace confusion, undermining Xai’s brand identity and leading some to mistakenly assume Musk is affiliated with the project.
Ex Populus claims the confusion started in July 2023 after Musk announced the launch of xAI. According to the complaint, the issue escalated in November 2024 when Musk revealed plans for xAI to enter the gaming space. The filing points to instances where consumers, media outlets, and even Musk’s AI assistant, Grok, mistakenly associated the two companies.
Furthermore, Ex Populus contended that the damage to its reputation stems largely from Musk’s divisive public persona and controversies tied to his AI company’s products. Xai argued this association has led to a “loss of control over its hard-earned goodwill.”
Ex Populus also claimed that Musk’s legal team attempted to pressure the company into giving up its trademark rights by threatening to seek cancellation of its registration earlier this month. The filing further noted that the U.S. Patent and Trademark Office had already suspended multiple xAI trademark applications, citing a potential likelihood of confusion with Xai’s existing mark.
“A threat of this magnitude coming from companies owned by one of the wealthiest, most highly visible, and most polarizing individuals in the world is meant to intimidate Plaintiff into signing away its rights,” the filing wrote.
In its filing, Ex Populus is requesting the cancellation of xAI’s pending trademark applications, financial compensation for alleged infringement, and an injunction barring Musk’s company from using the contested name in connection with gaming and blockchain activities.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
