Игровая сеть XAI обвиняет xAI Илона Маска в масштабной путанице и нарушении прав на товарный знак Translation: Gaming Network XAI Accuses Elon Musks xAI of Widespread Confusion and Trademark Violation

The gaming network XAI, built on Ethereum, has accused the AI startup xAI, backed by Elon Musk, of trademark infringement and unfair competition.

As outlined in documents submitted to the Federal District Court for the Northern District of California, the billionaire’s project has caused significant market confusion, damaging the XAI brand.

The parent company of the gaming protocol Ex Populus asserted that it has been using the trademark «XAI» since June 2023, the name being associated with both the protocol and the token.

Musk announced his xAI in July of the same year. The complaint includes evidence in the form of screenshots from social media and websites.

«The substantial user base and market influence of the defendants have resulted in widespread consumer misunderstanding regarding the connection between Musk and his company with the plaintiff and the XAI brand,» the documents state.

This confusion was exacerbated when xAI revealed plans to launch a gaming studio in 2024.

As evidence, the plaintiffs attached a post from the Binance forum, where a user had to clarify the distinction between the two projects.

Representatives of Ex Populus claim that the damages extend beyond lost business reputation. XAI has experienced «serious negative consumer sentiment» due to Musk’s ambiguous image and scandals surrounding xAI’s products.

Furthermore, the entrepreneur’s legal team allegedly attempted to pressure Ex Populus into relinquishing its rights by threatening to cancel their U.S. trademark registration, as stated in the lawsuit.

The U.S. Patent and Trademark Office has already suspended several trademark applications from xAI.

Ex Populus is seeking the complete dismissal of the pending copyright claims, compensation for rights violations, and a court order prohibiting Musk’s company from using the disputed name.

Notably, in August, journalists discovered that the chat-bot Grok from xAI had published hundreds of thousands of user dialogues on Google and other search engines.