The Ethereum -based game network, XAI has filed a complaint against the artificial intelligence company of Elon Musk Xai, accusing it of brand infringement and unfair competition.
The complaint, filed Thursday in the northern district of California, says that the XAI Musk company has created great confusion on the market, damaging the brand of Xai.
Ex Populus, the Delaware Corporation behind Xai, said that it had used Xai trade brand in American trade since June 2023, including via its blockchain game ecosystem and the $ XAI token. “This is a classic case of brand counterfeiting which requires the intervention of the court to remedy,” said the file.
Ex Populus operates the XAI ecosystem, which includes a network powered by the blockchain designed for video games and digital transactions, offering an infrastructure to support the logic of the game, decisions, rewards and data on AI on several applications, depending on the deposit.
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Xai Gaming Studio triggers additional confusion
The complaint alleys that the confusion began after Musk announced that his business, XAI, in July 2023 and deepened when he declared in November 2024 that XAI planned to launch a game studio.
The file stipulates that “confusion on the market abounded if the defendants / musk were associated, held or sponsored by the brand XAI of the applicant or associated goods and services”. He cited examples of consumers, publications and even the AI assistant of Musk Grok wrongly connecting the two companies.
Ex Populus argued that the prejudice of reputation goes beyond the lost good will. The complaint indicates that XAI was faced with a “significant negative feeling” due to the public image and the controversies of the Musk involving XAI products.
“The applicant is not only irreparably injured by the loss of control over his good will won in his brand XAI … but also the applicant is damaged because the confusing association with Elon Musk leads to a significant negative feeling”, notes the deposit.
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The Musk team put on XAI on the rights of brands
The deposit accuses Musk’s legal team of having tried to put pressure on ex Populus in the waiver of rights by threatening the cancellation of his registration at the beginning of the month.
The trial also mentioned that the American Patent and Brands Office has already suspended several of Musk brand XAI requests due to a probability of confusion with the existing brand of XAI.
Ex Populus seeks the cancellation of requests awaiting XAI, damages for counterfeiting and a court order to prevent Musk’s company from using the name contested in play and blockchain contexts. “There is no recourse in law for the magnitude of the damage that the defendants have caused,” the company told court.
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