Ethereum gaming network ”Xai” files lawsuit against Elon Musk's ”xAI” for trademark infringement

Ethereum-based gaming network Xai has filed a lawsuit against Elon Musk's artificial intelligence company xAI, alleging trademark infringement and unfair competition.
The lawsuit was filed on the 21st in the U.S. District Court for the Northern District of California, and Zai claims that "Musk's xAI has caused market confusion and damaged Zai's brand reputation."
Zai's parent company, Delaware-based Ex Populus, revealed that it has been using the "XAI" trademark in the United States since June 2023.
The lawsuit claims that the company has filed suit against XAI, which is a trademark infringement case that requires urgent judicial intervention.
Expopulous operates the Zai ecosystem, a blockchain-based network for video games and digital transactions, with game logic, AI-based
It will support various applications such as decision-making, reward systems, and data management. The confusion began when Musk announced the establishment of xAI in July 2023, and then announced that it would be launched in January 2024.
The lawsuit alleges that this was exacerbated by Zai's January announcement of plans to release a gaming studio for xAI, which "increased consumer, media, and even Musk's A.I.
"There have been numerous instances of confusion regarding the relationship between the two companies, from [the company's] Assistant Grok to [the company's] Assistant Grok," X Populus said. X Populus claims that this confusion goes beyond a simple loss of trust.
The complaint alleges that Xai experienced significant negative consumer reaction due to Musk's controversial public image and the controversy surrounding its xAI products.
Additionally, the lawsuit comes after Musk's legal team recently threatened to cancel the Xai trademark.
They claim they forced Populus to waive its rights.
The United States Patent and Trademark Office (USPTO) also ruled out Musk's xAI trademark, citing potential confusion with Xai's existing trademarks.
X Populus has already put some of its applications on hold. X Populus has asked the court to quash xAI's application, to pay damages for trademark infringement, and to block Musk's company from engaging in gaming and blockchain ventures.
The company filed a lawsuit seeking an injunction prohibiting the use of the name in the field related to the brand. In the lawsuit, the company claims that "the extent of the damage caused by the defendants is beyond the scope of legal remedies."
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