Xpoint, a provider of geolocation technology for the betting and casino industries, is allegedly infringing on GeoComply’s patent rights, according to a case filed this week in Delaware’s District Court.

GeoComply’s attorneys seek injunctive action prohibiting Xpoint from further patent infringement.

Xpoint published a statement characterizing the charges of patent infringement as “without merit.”

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A Poor End to a Hectic Month

In September, Xpoint signed agreements with mobile fantasy sports operator BettorFantasy and DFS operator Flex Fantasy, went live with Sporttrade in New Jersey following a partnership agreement signed in December, and agreed to provide PlayStar with its Xpoint Verify real-money gaming geolocation product in New Jersey following a partnership agreement signed in February.

The geolocation services provider also announced a new multi-million dollar funding round, with The Raine Group, SuRo Capital Sports, and Acies Investments joining previously disclosed investors Courtside Ventures and Bettor Capital.

Baker & Hostetler filed the action on behalf of geolocation provider GeoComply, alleging that Xpoint violated US patent No. 9,413,805, which was submitted by GeoComply in 2016 and covers a geolocation engine technology designed by GeoComply CEO and co-founder Anna Sainsbury. 

The lawsuit names Xpoint and the online operator which first launched with Xpoint, PlayStar, as co-defendants, citing Sporttrade and Mojo as two examples of Xpoint’s progress in the US, alleging that Xpoint’s management was fully aware that the company’s operations infringed upon GeoComply’s patented technology the entire time.

Seeking Interlocutory Relief

Invoking the public interest, GeoComply has petitioned the Delaware District Court for an “injunction to protect GeoComply’s investment-based risk” and “to enforce the Patent Act’s statutory right to prohibit others from performing GeoComply’s patented invention.” 

It provides “a secure way for identifying a geolocation using an algorithm” that “evaluates several single sources of geolocation data to derive a more accurate computation of a digital user’s location.”

Commenting on the lawsuit brought by its competitor, Xpoint issued a statement saying that the patent infringement “allegations are without substance” and indicating that this would be the company’s only word on the matter until the case was properly settled.

The company, which was created in 2019 and will be formally introduced at the Global Gaming Expo in Las Vegas in October 2021, now employs 55 people and is expanding its operations via clients in the United States and Canada.