Since the start of regulated online gambling in the United States, GeoComply hasn’t just been a major player, they have effectively been the only player in the field of geolocation. Recently, that started to change. Now, the Canadian-based company is taking legal action.
GeoComply contends Xpoint is infringing on its patented tech
Competing geolocation company Xpoint is partnering with an increasing number of US and Canadian online gambling companies to offer its services. The company started to launch in Ontario earlier this year with companies like SkillOnNet.
Xpoint recently started expanding into the US as well, including going live with sports betting exchange Sporttrade earlier this week. GeoComply seems to have noticed and filed a suit and injunction in a Delaware court on Wednesday. Delaware has jurisdiction in this matter, as Xpoint is a Delaware-based LLC.
The New Jersey online casino PlayStar was the first US company to launch with XPoint as its geolocation provider. While PlayStar is discussed at length in the filing, the suit does call out other operators in the US with Xpoint deals, Sporttrade and Mojo, as examples of Xpoint’s rapid US expansion.
GeoComply contends Xpoint is violating its patented technology (US Patent 9,413,805), which it filed in 2016. The suit also contends that Xpoint leadership was aware the entire time that the company was infringing upon GeoComply technology.
GeoComply noted there is potential for injunctive relief as well. As the filing states:
“The public interest favors an injunction to protect GeoComply’s investment-based risk that resulted in the ’805 Patent and to enforce the Patent Act’s statutory right to exclude others from practicing GeoComply’s patented invention. Accordingly, the circumstances of XPoint’s infringement warrant injunctive relief barring XPoint from further infringement of the ’805 Patent.”
GeoComply response to lawsuit
When asked for comment, GeoComply issued the following statement:
“This action is about protecting GeoComply’s proprietary technology. We welcome healthy competition and new ideas in the marketplace and the ability to distinguish our leading solutions and technology from others. We also respect, and expect others to respect, the valuable intellectual property that companies like ours spend a lot of time, effort, and money developing. We are confident in the merits of our case.
Otherwise, per our company policy, we won’t comment further on this or any other active legal matters.”
Xpoint calls the filing “meritless”
Xpoint issued the following statement about the suit:
“Xpoint, the geolocation technology company, has become aware that a market competitor, GeoComply, has recently filed a complaint alleging that Xpoint infringes U.S. patent No. 9,413,805. Xpoint believes the allegations are meritless.
The filing of GeoComply’s complaint follows a number of recent public announcements confirming that Xpoint’s geolocation technology is now live in both the USA and Canada with multiple partners in the North American sports betting and iGaming industry.
Xpoint was first formed in 2019, and officially unveiled at the Global Gaming Expo (G2E) in Las Vegas, in October 2021. The company continues to grow and now has 55 staff, working with a growing roster of clients in both the USA and Canada.”
Xpoint also said this is the only statement it intends to make on the matter until the suit is resolved.
Editor’s note: A previous version of this story erroneously listed PlayStar as a co-defendant in the suit, which the company is not.