DEF Files Amicus Brief in Support of Uniswap Labs and Uniswap Foundation

On Wednesday, September 3, 2025, DEF and the Solana Policy Institute (SPI) submitted an amicus brief in support of Uniswap Labs and Uniswap Foundation’s motion to dismiss claims brought against them by Bprotocol Foundation and LocalCoin Ltd.

The case centers on two patents, U.S. 11,107,049 and U.S. 11,574,291, that claim to have invented a method of calculating exchange rates between cryptocurrency tokens on a blockchain. In simple terms, the patents describe using a mathematical formula to set the price of one token relative to another in a smart contract-enabled blockchain environment. These patents are now being used offensively against Uniswap Labs and Uniswap Foundation. 

As we note in our amicus brief, the patented ideas do not represent technological breakthroughs, but rather “seek to capitalize on emerging technologies by attempting to claim abstract ideas merely by applying them in the context of the latest technologies.”

Our brief argues that the patent claims made are invalid under the Alice framework, a two-step test established by the Supreme Court for determining patent eligibility. Under this framework, a court must first “determine whether the claims at issue are directed to one of those patent-ineligible concepts.” If the first step is satisfied, the court must then “consider the elements of each claim both individually and ‘as an ordered combination’ to determine whether the additional elements ‘transform the nature of the claim’ into a patent-eligible application.”

Regarding step one of the Alice analysis, we argue that “the claims are directed to fundamental economic practice dating back to ancient human civilization.” On step two, we argue that the “claims merely apply the abstract ideas on conventional blockchain technology.”

Our brief cautions that blockchain innovation will be stifled if this lawsuit is not dismissed and the invalid patents are enforced. As we write, “as in many emerging industries, innovators are often small companies and startups that lack the resources to defend against abstract patents in protracted litigation.  Even the perceived risk of patent litigation would discourage market entry and creativity, chilling a transformative financial industry that could bring many benefits to the public.”   

The bottom line is that patents that dress up ancient economic practices in blockchain terminology should not be enforceable. Upholding such claims would not reward genuine innovation, but would instead chill the very progress the patent system is supposed to encourage.

Click here to read the brief.