Supplier of geolocation technology for the betting and gaming industry Xpoint is facing legal action from GeoComply for allegedly infringing on patent rights, a legal case filed this week in Delaware’s District Court revealed.
Bad End to a Busy Month
September turned out to be quite a busy month for Xpoint after signing agreements with mobile fantasy sports operator BettorFantasy and DFS operator Flex Fantasy, going live with Sporttrade in New Jersey following an agreement the parties signed in December, and the agreement to provide PlayStar with its Xpoint Verify real-money gaming geolocation product in New Jersey, after both parties signed a partnership deal in February.
Encouraged by its rapid progress in North America, the geolocation services supplier also announced a new multi-million funding round with The Raine Group, SuRo Capital Sports, and Acies Investments joining previous investors Courtside Ventures and Bettor Capital.
Representing geolocation supplier GeoComply, law firm Baker & Hostetler filed the lawsuit claiming that Xpoint violated US patent No 9,413,805 filed in 2016 by GeoComply and covering a geolocation engine technology invented by GeoComply chief executive officer and co-founder Anna Sainsbury.
The lawsuit names Xpoint and the online operator which first launched with Xpoint, PlayStar, as co-defendants, just mentioning Sporttrade and Mojo as two examples of Xpoint’s progress in the US, contending that Xpoint’s management was aware the entire time that the company’s operations were infringing upon technology patented by GeoComply.
Seeking Injunctive Relief
Turning to the Delaware District Court, GeoComply is seeking “injunction to protect GeoComply’s investment-based risk” in the name of the public interest and “to enforce the Patent Act’s statutory right to exclude others from practicing GeoComply’s patented invention.”
According to the patent wording, it covers “service that allows providers, such as a provider of network gaming services, to securely and reliably determine user or player location” by providing “a secure method for determining a geolocation using an algorithm” that “assesses multiple single sources of geolocation data to derive a more reliable calculation of a digital user’s location.”
Commenting on the lawsuit filed by its competitor, Xpoint released a statement claiming that the patent infringement “allegations are meritless,” and outlined that this would be the only statement on the matter until the case is legally resolved.
Officially unveiled at the Global Gaming Expo in Las Vegas in October 2021, the company that was founded in 2019 continues to expand its operation via clients in the US and Canada, and currently has a staff of 55 people.