GeoComply Loses Patent Infringement Case Vs. Xpoint

Posted on: November 12, 2024, 10:15h. 

Last updated on: November 12, 2024, 10:22h.

Philip Conneller @casinoorgphilc Read More
Expertise: Gaming Business, Regulation, Tribal Gaming.

An appeals court in Washington DC has dismissed geolocation software firm GeoComply’s patent infringement lawsuit against competitor Xpoint. It’s a decision that may point to a more open market in the future for geolocation services, which allow individual states to ring-fence gambling within their borders, ensuring compliance with state laws.

GeoComply, Xpoint, lawsuit, copyright, patent infringement, geolocation
The appellate panel upheld a 2023 ruling that found GeoComply’s tech wasn’t a sufficiently inventive concept to be patented, leaving Xpoint free to offer a similar product in the US. (Image: Casino.org)

Canada-based GeoComply sued Xpoint in 2022, claiming the latter was infringing on its patented “Geolocation Engine” after the Dubai-based tech company entered the US market through a deal with online casino PlayStar in New Jersey.

GeoComply complained that the alleged infringement had “caused, and will continue to cause, irreparable harm” to the plaintiff, forcing it to “compete against its own patented invention.” The suit sought an injunction against Xpoint, plus damages for GeoComply.

Xpoint countered that geolocation services shouldn’t be monopolized because they are essential to the health of the gaming industry.

Not Inventive Enough

In 2023, the suit was dismissed by Delaware US Circuit Judge William Bryson who found that the patent was too broad to be applicable. He also determined that GeoComply’s technology wasn’t a sufficiently “inventive concept,” noting that the patent didn’t claim any “meaningful advance in computing technology,” and that the computer hardware components in all the asserted claims were generic.

On Friday, a panel of judges at the US Court of Appeals for the Federal Circuit agreed with that ruling and tossed the case without publishing their reasoning. Xpoint applauded the panel’s decision in a statement on Monday.

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 that Xpoint can continue to operate and innovate freely in the geolocation technology space,” read the statement.

“Furthermore, the invalidation of GeoComply’s patent shows that no company can monopolize vital geolocation technology services and force their clients to work with them,” it added. “Xpoint will vigorously pursue opportunities to create choice for gaming operators and improve the health of the industry.

GeoComply ‘Stands Firm’

In its own statement, GeoComply said it was disappointed by the outcome of the case. While it “respected the judicial process,” the company said it “stood firm” in its belief that its technology needed to be protected 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,” said a GeoComply spokesperson. “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.”