The lawsuit centered on patents tied to a constant product automated market maker (AMM) model — the core mechanism behind many decentralized exchanges. Bancor alleged that Uniswap unlawfully used patented technology related to automated token pricing and liquidity pools.

However, Judge John G. Koeltl ruled that implementing pricing formulas on blockchain infrastructure does not make them patentable. He stated that using smart contracts and blockchain to address an economic problem in “predictable ways” does not transform an abstract idea into a patent-eligible invention. Simply limiting an idea to a specific technological environment, the court said, is not enough to secure patent protection.