A Federal District Court judge on Friday dismissed GeoComply’s patent infringement lawsuit against competitor Xpoint. Barring a successful appeal, the ruling by Judge William J. Bryson of the Delaware Circuit frees up one metric of the industry that has not had much competition as online gambling and sports betting explode state by state across the U.S.

The basis of the ruling is that GeoComply’s patent was never valid in the first place because it tries to patent subject matter that is not subject to patent law.

Geolocation services are critical for regulators and operators as it is the only currently accepted way of determining with a guaranteed high level of certainty where a player is located when they access a casino or sports book that is only allowed to operate within a state’s borders.

100 Million Geolocation Checks for Super Bowl

Once that is determined data collection and analysis can occur as well as was seen Monday when Geocomply announced that it had logged over 7.4 million account holders for Super Bowl Sunday and had completed over 100 million geolocation checks for sportsbooks, casinos, and regulators, logging a 25% increase over the previous year’s activity.

In the course of the lawsuit, Geocomply had asked the court for an injunction against Xpoint which would have prevented them from providing geolocation services until the litigation was concluded. Xpoint won a stay on that issue prior to Friday’s ruling.

GeoComply was forced to reveal its hand last month, indicating it had no first-hand evidence of patent infringement when it asked the court to compel a third party to provide evidence that Xpoint used “identical code processes” to GeoComply’s.

Part of a filing in the case stated: “Absent reviewing XPoint’s source code, it is not possible to articulate precisely how claim 1 of U.S. Patent No. 9,413,805 is met by XPoint’s accused geolocation service.”

Chief executive officer of Xpoint, Marvin Sanderson commented on Friday’s ruling stating: “From the beginning of this litigation Xpoint has maintained that it has conducted its business legally and appropriately.”

The case was filed with the court late last year when GeoComply claimed that Xpoint had been violating its intellectual property rights by utilizing geolocation engine technology purportedly invented by GeoComply founders.

GeoComply asked for an injunction in September 2022 “to protect GeoComply’s investment-based risk” and to stop Xpoint from using the “invention”.

However, a quick once-over of the method, without direct access to the code, seems to show a process rather than a coded engine with multiple avenues to achieve the process.

In the initial lawsuit, it was stated by GeoComply thus:

“A method for determining a geo-location, the method comprising:

transmitting a request to a first server by a first device;

collecting geolocation data associated with the first device in response to the request, the geolocation data collected by a module stored in memory and executed by a processor on the first device, the first device in communication with the first server which provides a service over a network;

identifying that one or more selected programs are present at the first device;

transmitting the geolocation data and programs and a list of the present selected programs to a second server;

receiving a geolocation message from the second server, the geolocation message generated at least in part from the geolocation data and a list of the present selected programs;

providing the received geolocation message to the first server.”

Xpoints response was that the suit was without merit.

A Monopoly Busted?

After the circuit court victory Friday, Sanderson commented: “As a company, we remained confident that we would prevail in this matter as GeoComply’s allegations were false, meritless, and a thinly veiled attempt to improperly maintain its monopoly on the gaming geolocation marketplace.”

GeoComply saw a greenfield advantage with the legalization of online casino gambling in the first states and took advantage of that to capture most of the market. The service is unique in that it essentially came about as a response to the need for it so by capturing the market, GeoComply may have inadvertently created a monopoly for itself with no fair and free competition.

To that thought, GeoComply had stated:

“We welcome healthy competition and new ideas in the marketplace and the ability to distinguish our leading solutions and technology from others. We also respect and expect others to respect, the valuable intellectual property that companies like ours spend a lot of time, effort, and money developing. We are confident in the merits of our case.”

Source: GeoComply’s Patent Infringement Case against Xpoint Dismissed, Gambling News, February 13, 2023

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Geolocation expertise provider Xpoint had its movement to dismiss associated the patent infringement case filed by competitor GeoComply granted by a federal courtroom in a key choice for the geolocation market.

Case Dismissed by Court docket

The ruling issued on Friday, February 10 by Decide William J. Bryson from the Federal Circuit within the District of Delaware discovered the geolocation patent of GeoComply to be invalid on the grounds that it makes an attempt to say a patent on material that can’t be patented and represents an entire win for Xpoint and all the geolocation market which can now be free and open to competitors.

“From the start of this litigation Xpoint has maintained that it has carried out its enterprise legally and appropriately,” commented Marvin Sanderson, chief govt officer of Xpoint, feeling “extraordinarily happy” with the ruling.

GeoComply launched the authorized case towards Xpoint in September final 12 months, claiming that Xpoint violated its patent dated again to 2016 overlaying a geolocation engine expertise invented by GeoComply chief govt officer and co-founder Anna Sainsbury.

GeoComply turned to the Delaware District Court docket searching for an “injunction to guard GeoComply’s investment-based threat” within the title of the general public curiosity and “to implement the Patent Act’s statutory proper to exclude others from working towards GeoComply’s patented invention.” Xpoint’s preliminary response was that the patent infringement claims are meritless.

Try to Preserve Monopoly

“As an organization, we remained assured that we might prevail on this matter as GeoComply’s allegations have been false, meritless, and a thinly veiled try to improperly preserve its monopoly on the gaming geolocation market,” Sanderson added.

Using its place as an early geolocation market entrant following the legalization of on-line sports activities playing within the US, GeoComply managed to amass a big market share however final 12 months its smaller competitor grabbed the eye with vital market development.

Final month, it turned apparent that GeoComply has no materials proof towards Xpoint and has constructed its case on a 3rd occasion after GeoComply filed a movement requesting the courtroom to compel the net gaming firm Out The Gate (OTG) to supply supplies associated to an inner on-line presentation throughout which it had been allegedly revealed that Xpoint had an identical code processes to GeoComply.

The courtroom ruling was additionally commented on by gaming {industry} professional Christian Goode, who’s satisfied that the choice would have an industry-wide influence, encouraging all disruptive startups and entrepreneurs.

“Geolocation is the one business-critical service offered to on-line gaming firms that beforehand lacked full and free competitors,” Goode stated, adamant that “gaming suppliers, gamers and regulators will profit from open competitors for this vital service.”

A important service for each operators and regulators, geolocation service suppliers assure that solely gamers situated within the state can have entry to on-line gaming actions.

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