Xpoint’s Win Against GeoComply Heralds a More Open Geolocation Market

Geolocation technology provider Xpoint achieved a significant legal victory after the US Court of Appeals for the Federal Circuit ruled last Friday that it had dismissed rival company GeoComply’s patent infringement allegations. This decision reinforces a prior judgment from the US District Court, which found GeoComply sought to patent on non-patentable subject matter.

This Ruling Ends a Long-Standing Dispute

GeoComply first filed its lawsuit against Xpoint in September 2023, alleging the latter of violating a 2016 patent relating to geolocation engine technology credited to GeoComply’s CEO and co-founder, Anna Sainsbury. GeoComply sought an injunction to protect its intellectual property, arguing that such a measure was in the public’s interest due to its extensive ties with the online gambling industry.

Xpoint, responding to the original lawsuit, dismissed the claims as “meritless” and a thinly veiled attempt by GeoComply to leverage its early market position and maintain a monopoly on the gaming geolocation marketplace. Such services remain critical to the US gambling sector, ensuring that players in a specific state can only access locally regulated operators.

Xpoint’s Victory Could Have Significant Ramifications

The court’s decision has broader implications that could alter the competitive landscape of geolocation technology. Xpoint’s victory is seen as a win for market openness, inviting a new wave of startups and established companies to enter the geolocation space and introduce exciting innovations. This ruling should disrupt the status quo, allowing companies to compete with their technology and quality of service rather than exclusive patent access.

Xpoint released an official statement following this development, praising the court’s decision to prevent a potential monopoly. The company drew attention to its original stance during the lawsuit as it remained adamant that it was conducting its business legally and appropriately. Xpoint also reinforced its commitment to enhancing the choice for gaming operators seeking geolocation services and bolstering the industry’s health. 

Xpoint’s victory demonstrates its commitment to an open, competitive market that drives forward the capabilities of geolocation technology for the entire gaming industry.

Xpoint statement

The end of this legal battle significantly opens up the gambling-related geolocation market as more companies will likely try to carve out a niche in this promising sector. However, the current rapidly evolving and competitive environment means that companies that are unable to keep up with technological demands and market expectations may face an uphill battle.

As for Xpoint, the company is ready to build on its momentum, focusing on delivering cutting-edge solutions across the gaming sector and beyond. The company aims to foster innovation and increase choice for gaming operators and end-users by championing an open market. Industry experts will closely monitor how the market develops as new challengers emerge.

Update:

GeoComply has now issued an official statement, expressing disappointment over the court’s verdict and reiterating its commitment to delivering reliable, customer-focused solutions. The company emphasized that its platform and technology are not reliant on a single patent but reflect years of expertise and an extensive record of innovation.

Despite the court’s decision, GeoComply maintains that its proprietary technology deserves legal protection. The company stressed that its decision to pursue legal action was motivated by a responsibility to protect its intellectual property and noted that the ruling could result in its groundbreaking technology facing unfair infringement.

“GeoComply takes pride in championing fair competition in the marketplace and promoting start-up innovators who challenge incumbents and strengthen the industry. However, when we believed our proprietary technology rights were being violated, we could not stand by without defending our innovation. GeoComply remains committed to promoting competition while still protecting our broad intellectual property rights.”

GeoComply statement

The company touted its industry-leading 1.2 billion transactions per month, while consistently maintaining over 99.99% uptime and achieving over 99% pass rates. The official statement also reaffirmed GeoComply’s focus on creating and delivering industry-leading geolocation compliance and anti-fraud technology.