Published on: November 12, 2024, 10:15h.
Last updated on: November 12, 2024, 10:22h.
An appeals court in Washington DC has dismissed geolocation software provider GeoComply’s lawsuit against competitor Xpoint for patent infringement. This decision could signal a more competitive market for geolocation services in the future, enabling states to regulate gambling within their borders and ensure compliance with local laws.
GeoComply, based in Canada, filed a lawsuit against Xpoint in 2022, alleging that the Dubai-based company was infringing on its patented “Geolocation Engine” after entering the US market through a partnership with online casino PlayStar in New Jersey.
GeoComply argued that the alleged infringement had caused and would continue to cause irreparable harm, as it forced them to compete against their own patented invention. The lawsuit sought an injunction against Xpoint and damages for GeoComply.
Xpoint argued that geolocation services should not be monopolized, as they are vital to the gaming industry’s well-being.
Insufficient Innovation
In 2023, the suit was dismissed by Delaware US Circuit Judge William Bryson, who deemed the patent too broad to be enforceable. He also ruled that GeoComply’s technology was not an inventive enough concept, stating that the patent did not represent a significant advancement in computing technology and that the computer hardware components in the claims were generic.
On Friday, a panel of judges at the US Court of Appeals for the Federal Circuit upheld this decision and dismissed the case without providing further explanation. Xpoint welcomed the ruling in a statement on Monday.
Both the District Court and the US Court of Appeals for the Federal Circuit have determined that GeoComply’s patent infringement claims against Xpoint lack merit. This decision allows Xpoint to continue operating and innovating freely in the geolocation technology sector,” the statement read.
“Moreover, the invalidation of GeoComply’s patent demonstrates that no company can monopolize essential geolocation technology services and compel their clients to work exclusively with them,” it added. “Xpoint will actively pursue opportunities to provide choices for gaming operators and enhance the industry’s well-being.
GeoComply Stands Firm
In its own statement, GeoComply expressed disappointment with the case’s outcome. While respecting the legal process, the company maintained its stance that its technology should be safeguarded from improper infringement.
“GeoComply advocates for fair competition in the market and supports startup innovators who challenge established players and bolster the industry,” said a GeoComply spokesperson. “However, when we believed that our proprietary technology rights were being violated, we could not sit idly by without defending our innovation. GeoComply remains committed to fostering competition while safeguarding our broad intellectual property rights.”