Xpoint and GeoComply in court tussle over patent infringement claims

Geolocation goliath GeoComply has launched a patent infringement lawsuit against rival technology firm Xpoint over claims its technology infringes the firm’s patents.

The suit, filed in Delaware’s District Court, focuses on US patent number 9,413,805 granted in August 2016 for a “geolocation engine” which was the brainchild of GeoComply CEO and co-founder Anna Sainsbury.

Patent administration includes any service that “allows providers, such as a provider of network gaming services, to securely and reliably determine user or player location.”

It continues: “The present invention provides a secure method for determining a geolocation using an algorithm within a secure wrapper. The algorithm assesses multiple single sources of geolocation data to derive a more reliable calculation of a digital user’s location.”

This technology has propelled GeoComply to a position of dominance in geolocation technology, which is deployed in many igaming and sports betting states across the US to confirm whether players are physically located in states which legally permit either vertical.

The patent, which entitles GeoComply to sole rights to all related intellectual property (IP), will expire in December 2033.

Last month, XPoint confirmed it had partnered with betting exchange operator Sporttrade in New Jersey, an agreement which sees the firm deliver its own geolocation service, XPoint Verify. The technology is also used by fellow New Jersey operator PlayStar on its igaming app.

The firm recently received a multi-million-dollar funding boost and counts Bettor Capital’s David VanEgmond among its investors and board members.

In the patent infringement lawsuit, GeoComply suggests that the XPoint Verify system mirrors its own, in that it shares data with two servers, with the geolocation provider inferring that the continuance of this technology will cause the company “irreparable harm” in the future.

“As such, XPoint should be enjoined from further infringement of the ’805 Patent,” the complaint states.

“GeoComply has spent valuable resources developing and refining – and patenting – its proprietary platform for reliably and accurately determining the true location of an end-user.

“Should XPoint continue to commercialize its geolocation technology, GeoComply will be forced to compete against its own patented invention,” it adds.

The complaint asks for an arbitrary judgement on the patent infringement claims, as well as a permanent injunction preventing XPoint from utilizing any patented technology and the repayment of any profits made by XPoint in the form of damages.

Responding to the claims made, XPoint issued a statement branding them “meritless”.

“The filing of GeoComply’s complaint follows a number of recent public announcements confirming that Xpoint’s geolocation technology is now live in both the USA and Canada with multiple partners in the North American sports betting and igaming industry.

“Xpoint will not make any further statements on this matter until such time as the legal action has concluded,” the firm added.

Last week, GeoComply fired the first salvo in the case, asking for an expedited discovery process and briefing schedule, based on the company’s aim of identifying which specific lines of code located within the XPoint geolocation technology infringe on its US patent.

In the motion, GeoComply remarked that it was not on a “mere fishing expedition” and wanted to pursue an efficient use of both parties’ time and the resources of the court.

This motion was, however, denied by US District Court Judge Colm Connolly.

The case continues.