Xai Sues Elon Musk's xAI Over Trademark Confusion
Xai Sues Elon Musk’s xAI Over Trademark Dispute
Xai, an Ethereum-based gaming network, has filed a lawsuit against Elon Musk’s artificial intelligence company, xAI, accusing it of trademark infringement and unfair competition. The legal action highlights growing concerns over brand confusion in the tech sector.
The lawsuit, filed in the Northern District of California, alleges that Musk’s xAI has created widespread market confusion, thereby damaging Xai’s brand. Ex Populus, the company behind Xai, claims it has used the XAI trademark in U.S. commerce since June 2023. This includes its blockchain gaming ecosystem and the $XAI token.
“This is a classic case of trademark infringement that requires the Court’s intervention to remedy,” the filing states.
Confusion Arises from xAI's Gaming Studio Announcement
The complaint states that confusion intensified after Musk announced xAI in July 2023 and further deepened in November 2024 when xAI revealed plans to launch a gaming studio. This announcement allegedly led to marketplace confusion, with consumers and publications incorrectly linking the two ventures.
Ex Populus argues that this confusion extends beyond mere goodwill, resulting in “significant negative consumer sentiment” due to Musk’s controversial public image and issues surrounding xAI products.
“Plaintiff is not only being irreparably harmed by the loss of control over its hard-earned goodwill in its XAI Trademark… but also Plaintiff is damaged because the confusing association with Elon Musk is resulting in significant negative consumer sentiment,” the filing explains.
Legal Pressure and USPTO Suspensions
According to the filing, Musk’s legal team attempted to pressure Ex Populus into relinquishing its trademark rights by threatening cancellation of its registration. The lawsuit also notes that the U.S. Patent and Trademark Office (USPTO) has suspended several of Musk’s xAI trademark applications, citing a likelihood of confusion with Xai’s existing mark.
Ex Populus seeks the cancellation of xAI’s pending applications, damages for infringement, and a court order preventing Musk’s company from using the name in gaming and blockchain contexts.
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