Ex Populus, a distributor of games for the blockchain project Xai, has initiated a lawsuit against xAI, owned by Elon Musk. The plaintiffs claim that xAI is infringing on the trademark rights of Xai and engaging in unfair competition, resulting in reputational and financial losses for the Xai brand.
This is reported by Business • Media
Reasons for the Lawsuit and Allegations
Ex Populus has been collaborating with the Xai Foundation since July 2023 and is the first game provider on the L3 blockchain of the same name. The lawsuit states that xAI’s actions have caused confusion among consumers, as Musk’s company is often mistakenly associated with Xai and its products. This situation intensified after Elon Musk publicly announced in November 2024 his intentions to create an AI-based game studio.
The lawsuit provides numerous examples where xAI or its leader Elon Musk have been equated with Xai, even in the responses of the Grok chatbot developed by xAI.
Ex Populus claims that the Xai team has faced “significant negative sentiment” due to Musk’s image and actions. The alleged damage extends beyond lost business reputation, which explains the need for court intervention.
Actions of Lawyers and Regulatory Response
The court filing indicates that representatives of xAI attempted to pressure Xai into relinquishing trademark rights. Meanwhile, the U.S. Patent and Trademark Office has suspended the review of several xAI applications due to the confusion surrounding the Xai brand.
Ex Populus is seeking a court injunction against any further attempts by xAI to use the Xai trademark and compensation for the damages incurred.
It is worth noting that users previously criticized the new version of the Grok chatbot for inappropriate behavior; however, developers at xAI promptly responded to the situation and made the necessary adjustments.