DraftKings is seeking to challenge a patent held by Cantor Fitzgerald through the U.S. Patent and Trademark Office (USPTO), claiming that the gaming company used it for its own benefit.
The patent in question, U.S. Patent No. 12,406,284, involves geolocation technology commonly used in the sports betting industry to verify wagers made from legal jurisdictions. It was co-invented by Howard Lutnick, former CEO of Cantor and current Commerce Secretary.
“During prosecution, the Examiner did not apply the material prior art or straightforward combinations presented here, which render every challenged claim obvious,” according to a DraftKings filing with the patent office.
DraftKings is advocating for an inter parties review and challenging the patent’s 18 claims as “unpatentable” under U.S. code.
DraftKings May Face Patent Dispute
Patent disputes, especially regarding geolocation services, are common in online gaming. The outcome of the Cantor Fitzgerald/DraftKings conflict remains uncertain, potentially disadvantaging the gaming company.
Lutnick oversees the USPTO as the Commerce Secretary, raising concerns of bias in the patent office’s decision. Recent leadership changes have made it more challenging for parties to access the Patent Trial and Appeal Board (PTAB), where DraftKings is appealing.
Cantor Previously Sued DraftKings, FanDuel
In April, Cantor’s Interactive Games LLC sued DraftKings and FanDuel, accusing them of patent infringement. This suit followed similar litigation a decade ago, where both companies disputed the claims.
The lawsuit alleged infringement of five patents and sought financial compensation from the gaming companies.
Interactive Games, a former Cantor subsidiary, faced controversies like money laundering allegations before being sold in 2019.