TLDR
- Ex Populus gaming company sued Musk’s xAI for trademark infringement in federal court
- Gaming network claims XAI trademark use since June 2023, before Musk’s July 2023 announcement
- Market confusion escalated when Musk announced xAI gaming studio plans in November 2024
- US Patent Office suspended Musk’s trademark applications due to confusion with existing mark
- Gaming company seeks court injunction and monetary damages from trademark dispute
Ex Populus, the company behind Ethereum gaming network Xai, filed a federal trademark lawsuit against Elon Musk’s artificial intelligence firm xAI this week. The Delaware corporation claims trademark infringement and market confusion in California federal court.
The gaming company argues it established XAI trademark rights in June 2023 through its blockchain gaming ecosystem and $XAI token. Musk announced his competing xAI venture one month later in July 2023.
Ex Populus operates a blockchain-powered gaming network supporting video games and digital transactions. The platform provides infrastructure for game logic, AI decisions, rewards systems and data management across multiple gaming applications.
Gaming Studio Plans Trigger Legal Action
The trademark dispute intensified when Musk announced xAI would launch a gaming studio in November 2024. His social media post about making “games great again” reached over 36 million viewers and directly entered Ex Populus’s gaming territory.
The lawsuit documents widespread marketplace confusion between both companies. Publications, consumers and even Musk’s Grok AI assistant have incorrectly connected the two separate ventures operating in similar spaces.
Ex Populus claims reputational damage extends beyond lost business goodwill. The gaming company faces negative consumer sentiment due to controversies surrounding Musk’s public image and xAI product issues.
The filing cites incidents where Grok chatbot promoted violence and made inappropriate comments. These controversies create harmful brand associations for the established gaming ecosystem, according to court documents.
Patent Office Action and Legal Pressure
The US Patent and Trademark Office already suspended several xAI trademark applications due to confusion likelihood with Ex Populus’s existing registration. This regulatory action supports the gaming company’s legal position.
Musk’s legal team attempted pressuring Ex Populus into surrendering trademark rights through threatened cancellation proceedings. On August 7, xAI counsel warned they would petition canceling the gaming company’s federal registration unless worldwide trademark rights were granted.
Ex Populus seeks permanent injunction preventing xAI from using disputed marks in gaming and blockchain contexts. The lawsuit demands monetary relief including profit disgorgement, actual damages and punitive awards under federal and state law.
The XAI gaming token has declined 96% from its March 2024 peak of $1.60. Reduced blockchain gaming interest and broader crypto market weakness have impacted token performance during this legal battle.
The case represents growing intellectual property conflicts in crypto and blockchain sectors as companies compete for valuable trademark rights in emerging technology markets.
