Ethereum Gaming Network Xai Sues Elon Musk's xAI for Trademark Infringement

The Creators of an Ethereum Gaming Network Just Sued Elon Musk's xAI - Decrypt

Ex Populus argues Musk's controversies, including Grok's past offensive remarks, have severely damaged its brand. The creators of Xai, a layer-3 gaming blockchain built on Ethereum, have sued Elon Musk's xAI for trademark infringement -- and are asking a federal court to force the billionaire's artificial intelligence company to change its name and branding in contexts related to video games and blockchain. In November, Musk announced plans to start an AI video game studio within xAI, to "make games great again." Ex Populus, the company behind gaming blockchain Xai, now claims that Musk's announcement immediately created "substantial actual confusion" online between their established video game brand, Xai, and Musk's xAI gaming venture. Numerous news aggregators and commentators used the blockchain's logo in announcements about Musk's venture, the company's attorneys claim, and many more internet users mistook the separate ventures to be related. What's more, Grok -- Musk's AI chatbot -- also confused the two separate entities, and told X users they were both controlled by Musk's companies, the attorneys said. In a complaint filed Thursday, Ex Populus asked a federal court in northern California to order Musk's AI company to cease using any words or symbols likely to cause confusion with Xai's registered trademark, in the contexts of video gaming and blockchain. It also requested punitive damages and all profits reaped by Musk's companies for the alleged infringement. Ex Populus' attorneys repeatedly argued in their complaint that Musk's company has not only consistently infringed on their copyright since last year -- but, further, that the particular notoriety and controversy associated with the world's richest man have made the alleged infringement particularly damaging to their brand. "Musk and defendants' xAI company routinely receive substantive negative media attention that is now being attributed to plaintiff's XAI trademark," the attorneys wrote. The lawyers made particular note of a controversy that erupted last month when Musk's AI bot, Grok, referred to itself as "MechaHitler" for a brief period and made antisemitic, racist, and sexually violent comments across the X platform. "Plaintiff losing control over its goodwill is irreparable harm sufficient to support an injunction to cease defendants' use of the infringing xAI marks," Ex Populus' attorneys said, "but to be associated with Nazism, hate speech, and violence exacerbates the harm exponentially." Ex Populus said in a statement that Musk's attorneys reached out to them recently about trademark issues, and that, now, the company feels it has no option but to fight back "or risk losing [the trademark] altogether." "This case isn't just about Ex Populus or Xai," the company said. "It speaks to something bigger: the right of smaller innovators to build without having their identity swallowed by tech giants."

Ethereum gaming network Xai sues Musk's xAI for trademark infringement

Ethereum gaming network Xai claims Elon Musk's AI firm xAI has caused market confusion and reputational harm. 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, lodged in the Northern District of California on Thursday, claims Musk's xAI company has created widespread market confusion, damaging Xai's brand. Ex Populus, the Delaware corporation behind Xai, said it has used the XAI trademark in US commerce since June 2023, including through 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 said. Ex Populus operates the Xai ecosystem, which includes a blockchain-powered network designed for video gaming and digital transactions, offering infrastructure to support game logic, AI-driven decisions, rewards and data management across multiple applications, per the filing. Related: Elon Musk's 'America Party' plans have stalled: Report The complaint alleges that confusion began after Musk announced his company, xAI, in July 2023 and deepened when he said in November 2024 that xAI planned to launch a gaming studio. The filing states that "marketplace confusion abounded as to whether Defendants/Musk were associated with, owned, or sponsored Plaintiff's XAI Trademark or the associated goods and services." It cited examples of consumers, publications and even Musk's AI assistant Grok incorrectly linking the two ventures. Ex Populus argued that the reputational harm goes beyond lost goodwill. The complaint says Xai has faced "significant negative consumer sentiment" due to Musk's polarizing public image and controversies involving 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 notes. Related: xAI blames code for Grok's anti-Semitic Hitler posts The filing accuses Musk's legal team of trying to pressure Ex Populus into relinquishing rights by threatening cancellation of its registration earlier this month. The lawsuit also mentioned that the US Patent and Trademark Office has already suspended several of Musk's xAI trademark applications due to a likelihood of confusion with Xai's existing mark. Ex Populus is seeking 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 remedy at law for the sheer magnitude of harm Defendants have caused," the company told the court.