Ethereum-based gaming network Xai has initiated a lawsuit against Elon Musk’s artificial intelligence firm xAI, alleging trademark infringement and unfair competition. The suit, filed in the Northern District of California, claims that Musk's xAI has created confusion in the marketplace and damaged Xai's brand reputation. Ex Populus, the company behind Xai, asserts that since June 2023, their gaming ecosystem and the associated $XAI token have been negatively impacted by the confusion stemming from Musk's announcements regarding xAI, particularly about a gaming studio. The lawsuit argues that the association with Musk's controversial public image has resulted in significant negative consumer sentiments toward Xai. Moreover, Ex Populus has accused Musk's legal team of pressuring them to give up their trademark rights. The firm is seeking to cancel xAI's trademark applications, damages for the alleged infringement, and a court order to restrict Musk's company from using the name in related contexts. The US Patent and Trademark Office has already paused several of Musk’s xAI trademark filings due to potential confusion with Xai's existing trademarks.

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