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Federal judge grants Xpoint’s motion to dismiss GeoComply’s patent infringement complaint, determines GeoComply’s geolocation patent is invalid
Xpoint was represented by Covington & Burling LLP’s Gary Rubman and Peter Swanson
MIAMI, February 13, 2023 – On Friday, February 10, a federal court granted a motion to dismiss filed by Xpoint, a leading geolocation and compliance technology company focused on the United States sports betting and iGaming markets, in a patent infringement suit brought by competitor GeoComply. In dismissing GeoComply’s suit, Federal Circuit Judge William J. Bryson, sitting by designation in the District of Delaware, found GeoComply’s geolocation patent to be invalid. The court determined that GeoComply’s patent is invalid on the grounds that it attempts to claim unpatentable subject matter. This represents a complete win for Xpoint. As a result of Judge Bryson’s ruling, the geolocation market for gaming companies is, and should be, free and open to competition.
“We are extremely pleased with Judge Bryson’s ruling. From the beginning of this litigation Xpoint has maintained that it has conducted its business legally and appropriately. As a company, we remained confident that we would prevail in this matter as GeoComply’s allegations were false, meritless, and a thinly veiled attempt to improperly maintain its monopoly on the gaming geolocation marketplace,” said Marvin Sanderson, Xpoint CEO.
As an early market entrant following the recent legalization of online sports gambling in the United States, GeoComply initially built a large market share of the United States gaming geolocation services market. However, in 2022, Xpoint demonstrated significant growth in the market, ultimately leading GeoComply to file its now-dismissed patent infringement claims. Geolocation services providers provide players and state gaming regulators with the important service of ensuring that online gaming activities in a state are limited to people actually located in the state.
“This is an important decision for not only Xpoint and the gaming geolocation marketplace but for all disruptive startups and entrepreneurs in the gaming industry. Geolocation is the only business-critical service provided to online gaming companies that previously lacked full and free competition. Gaming providers, players and regulators will benefit from open competition for this important service.” said gaming industry expert Christian Goode.
About Xpoint
Xpoint provides essential geolocation security solutions and intelligent location-based marketing insights to the global sports betting and iGaming industries. Xpoint’s innovative Verify and Lite platforms ensures partners meet their regulatory geo-compliance obligations, and deliver enhanced value through the generation of location-based data that can drive marketing programs. Xpoint was founded in 2019 and officially unveiled in Las Vegas in 2021, and is led by the company's CEO Marvin Sanderson, a global sports betting and iGaming industry leader. With North American offices in Toronto, Canada and Miami, Florida, Xpoint is changing the global geolocation market, bringing innovation to an industry that has, to date, viewed geo-compliance as a utility, not a new business opportunity. For more information, visit xpoint.tech and follow Xpoint on LinkedIn and Twitter for regular updates.
About Covington & Burling LLP
Covington & Burling LLP provides corporate, litigation, and regulatory expertise to help clients navigate their most complex business problems, deals, and disputes. Founded in 1919, the firm has more than 1,300 lawyers in offices in Beijing, Brussels, Dubai, Frankfurt, Johannesburg, London, Los Angeles, New York, Palo Alto, San Francisco, Seoul, Shanghai, and Washington. Covington has one of the nation's leading patent litigation and gaming practices and routinely represents many of the world's top gaming companies.
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