Geolocation technology supplier Xpoint had its motion to dismiss related the patent infringement case filed by competitor GeoComply granted by a federal court in a key decision for the geolocation market.
Case Dismissed by Court
The ruling issued on Friday, February 10 by Judge William J. Bryson from the Federal Circuit in the District of Delaware found the geolocation patent of GeoComply to be invalid on the grounds that it attempts to claim a patent on subject matter that cannot be patented and represents a complete win for Xpoint and the entire geolocation market which will now be free and open to competition.
“From the beginning of this litigation Xpoint has maintained that it has conducted its business legally and appropriately,” commented Marvin Sanderson, chief executive officer of Xpoint, feeling “extremely pleased” with the ruling.
GeoComply launched the legal case against Xpoint in September last year, claiming that Xpoint violated its patent dated back to 2016 covering a geolocation engine technology invented by GeoComply chief executive officer and co-founder Anna Sainsbury.
GeoComply turned to the Delaware District Court seeking an “injunction to protect GeoComply’s investment-based risk” in the name of the public interest and “to enforce the Patent Act’s statutory right to exclude others from practicing GeoComply’s patented invention.” Xpoint’s initial reaction was that the patent infringement claims are meritless.
Attempt to Maintain Monopoly
“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,” Sanderson added.
Utilizing its position as an early geolocation market entrant following the legalization of online sports gambling in the US, GeoComply managed to acquire a large market share but last year its smaller competitor grabbed the attention with significant market growth.
Last month, it became obvious that GeoComply has no material evidence against Xpoint and has built its case on a third party after GeoComply filed a motion requesting the court to compel the online gaming company Out The Gate (OTG) to provide materials related to an internal online presentation during which it had been allegedly revealed that Xpoint had identical code processes to GeoComply.
The court ruling was also commented on by gaming industry expert Christian Goode, who is convinced that the decision would have an industry-wide impact, encouraging all disruptive startups and entrepreneurs.
“Geolocation is the only business-critical service provided to online gaming companies that previously lacked full and free competition,” Goode said, adamant that “gaming providers, players and regulators will benefit from open competition for this important service.”
A critical service for both operators and regulators, geolocation service providers guarantee that only players located in the state will have access to online gaming activities.