DraftKings issued with US Patent lawsuit by Colossus Bets over use of Cash Out

Colossus Bets has filed a US Patent lawsuit against DraftKings concerning the infringement of its ‘cash out’ product.
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Colossus Bets has filed a US Patent lawsuit against DraftKings concerning an alleged infringement of its Cash Out product.

Filed on Wednesday in the District Court of Delaware, the lawsuit sees Colossus accuse DraftKings of infringing seven patents across sports betting and gaming products that are incorporated within its Cash Out feature.

Colossus will be represented by Global law firm DLA Piper in legal proceedings, in which the sports betting technology firm emphasized its full intentions to defend its intellectual property rights.

The statement read: “Colossus holds an extensive patent portfolio globally on sports bets and games incorporating Cash Out, including whether or not the Cash Out feature is used by the player.”

Colossus said that it had previously warned DraftKings of multiple patent infringements dating back to 2018, during which the US operator was launching its initial sportsbook property post-PASPA federal repeal.

The firm stated that in light of DraftKings continuing to offer its products despite repeated warnings it will recover all damages available by law, including increased damages for “willful and deliberate infringement”.

Colossus founder and IP owner Bernard Marantelli stated: “We attempted to resolve this amicably and we gave them ample opportunity to do so.

“We take our intellectual property very seriously. This is the next step towards protecting our rights and income across the industry in the US.”

Within the US, Colossus underlined that it had secured patent licenses with bet365 and Esports Technologies. DraftKings lawsuit follows the initiation of similar IP infringement proceedings made by Colossus against Tabcorp Holdings in Australia.

Colossus stated that its global patent portfolio covered the regions of Australia, Japan, South Korea, the Philippines, Indonesia, South Africa, Singapore, Nigeria, and Eurasia (EAPO).