Ethereum-based gaming network Xai has filed a lawsuit against Elon Musk’s artificial intelligence company Xai, denounced trademark infringement and unfair competition.
The complaint filed Thursday in the Northern California district alleges that Musk’s Xai has created widespread market disruption and damaging the Xai brand.
Delaware’s Ex Populus, behind Xai, said it has been using US commercial Xai trademarks since June 2023, including the blockchain gaming ecosystem and $Xai tokens. “This is a classic case of trademark infringement that requires court improvement intervention,” the submission said.
Ex Populus operates the Xai ecosystem, including blockchain-powered networks designed for video games and digital transactions. With each filing, this provides infrastructure that supports game logic, AI-driven decisions, rewards and data management.
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Xai Gaming Studio causes even more confusion
The complaint claims the confusion began after Musk announced his company, Xai in July 2023, deepened when Xai said he was planning to launch a game studio in November 2024.
The filing states that “there is a lot of market confusion as to whether Defendant/Mussk is associated with, owned or sponsored by the plaintiff’s Xai trademark or associated goods and services.” I cited the example of Musk’s AI assistant Grok, who incorrectly links consumers, publications, and even two ventures.
Ex Populus argued that the harm to reputation exceeded lost goodwill. The complaint says Xai is facing “significant negative consumer sentiment” due to the controversy involving Musk’s polarized public image and Xai products.
“Not only is the plaintiff irreparably harmed by the loss of control over his hard-earned goodwill in Xai’s trademark, but the plaintiff is also suffering as his confused connection with Elon Musk brings significant negative consumer sentiment,” the filing states.
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Musk’s team put pressure on Xai on trademark rights
The submission accused Musk’s legal team of attempting to put pressure on expopulus to waive its rights by threatening to cancel registrations earlier this month.
The lawsuit also said that the US Patent and Trademark Office has already stopped some of Musk’s Xai trademark applications due to possible confusion with Xai’s existing marks.
Ex Populus is seeking cancellation of Xai’s pending applications, infringement damages, and court orders to prevent Musk’s company from using disputed names in the context of games and blockchain. “There is no remedy in the law due to the magnitude of the harm caused by the defendant,” the company told the court.
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