Xpoint wins “meritless” patent infringement case against GeoComply
Geolocation firm hails victory after appeal process, saying the decision proves “no company can monopolise vital geolocation technology services”
The US Court of Appeals for the Federal Circuit has ruled in favour of Xpoint in its patent infringement dispute with fellow geolocation services provider, GeoComply.
GeoComply first filed the lawsuit against Xpoint in October 2022, on the grounds Xpoint’s geolocation technology overlapped with GeoComply’s patent.
The patent, filed by GeoComply in August 2016, pertains to technology which can determine a user’s location while accessing online gambling services.
GeoComply’s patented “geolocation engine”, which gives the business sole rights to all related intellectual property, doesn’t expire until December 2033.
The alleged patent infringement came about when Xpoint entered into a partnership with Sporttrade in September 2022, which included the use of the firm’s own geolocation technology, Xpoint Verify.
This technology was also used by New Jersey operator PlayStar for its own igaming app.
GeoComply filed the initial lawsuit after determining Xpoint Verify was too similar to its own software, as both providers shared data from the same server.
This case was dismissed in February 2023 by a judge in the US District Court of Delaware, who ruled that the crucial aspects of the geolocation process took place on servers belonging to PlayStar, which rendered GeoComply’s claim invalid.
Undeterred, GeoComply took the case to the US Court of Appeals for the Federal District.
On the Court of Appeals’ verdict, an Xpoint statement read: “We are pleased the court has ruled in our favour, affirming what we have maintained from the start: Xpoint has conducted its business legally and appropriately, and GeoComply has attempted to restrict competition through a patent that is invalid under US law.
“Both the District Court and now the US Court of Appeals for the Federal Circuit have held that GeoComply’s patent infringement allegations against Xpoint are meritless.
“The decision means Xpoint can continue to operate and innovate freely in the geolocation technology space.”
The statement added that the court’s decision was a positive step towards creating a competitive market.
“Furthermore, the invalidation of GeoComply’s patent shows that no company can monopolise vital geolocation technology services and force their clients to work with them,” it continued.
On the ruling, GeoComply released the following statement: “Throughout this legal process, our commitment to serving our customers and delivering innovative solutions has remained as strong as ever. Our cutting-edge suite of solutions have never been about a single patent; they are the result of our decade-plus experience, the expertise of our team, and our unrelenting focus on customer success.
“This innovation is demonstrated through GeoComply’s proven track record of service delivery, reliability, and scalability. Our industry-leading platform processes over 1.2 billion transactions per month in a dynamic, context-aware system logic, all while consistently maintaining over 99.99% uptime and achieving over 99% pass rates. Our focus on creating and delivering industry-leading geolocation compliance and anti-fraud technology continues to drive us forward.
“We are disappointed by the court decisions related to patent law technicalities, and while we respect the judicial process, we stand firm in our belief that this specific innovation within our groundbreaking technology deserves protection from improper 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.”