Geolocation provider Xpoint has prevailed in court against its larger competitor GeoComply, which had accused it of patent infringement. The US Court of Appeals for the Federal Circuit has upheld the dismissal of GeoComply’s case, which dates back to 2022. The lawsuit alleged that Xpoint had infringed on the patent for the geolocation engine developed by GeoComply co-founder and CEO Anna Sainsbury.
In February 2023, US District Court Judge William Bryson sided with Xpoint’s dismissal argument that GeoComply’s patent was too broad to be applicable. With his decision, Bryson concurred and ruled that “using multiple sources of information to verify a person’s locations is a longstanding business practice.”
GeoComply appealed that decision, arguing that its patent held merit because the technology measured the reliability of locations beyond simply determining where a player was.
With this latest decision, the Court of Appeals three-judge panel unanimously disagreed, affirming the lower court’s ruling.
While the decision is undoubtedly a blow to GeoComply and a win for Xpoint, the real winners will likely be US gamblers. More competition likely means competitive pricing. As a result, lower overhead for operators should relieve some of the investor pressure to worsen odds or cut promotions in the name of profitability.
Xpoint Statement Lauds ‘Right to Compete’
In a statement shared with Bonus, Xpoint said the ruling affirms the “right to compete” in the geolocation technology space. The company also said it intended to “vigorously” pursue opportunities to offer operators increased choice and improve the industry.
We are pleased the court has ruled in our favor, affirming what we have maintained from the start: Xpoint has conducted its business legally and appropriately, and GeoComply has attempted to restrict competition through a patent that is invalid under U.S. law. Both the District Court and now the U.S. Court of Appeals for the Federal Circuit have held that GeoComply’s patent infringement allegations against Xpoint are meritless. The decision means that Xpoint can continue to operate and innovate freely in the geolocation technology space.
Furthermore, the invalidation of GeoComply’s patent shows that no company can monopolize vital geolocation technology services and force their clients to work with them. Xpoint will vigorously pursue opportunities to create choices for gaming operators and improve the health of the industry. Xpoint’s victory demonstrates its commitment to an open, competitive market that drives forward the capabilities of geolocation technology for the entire gaming industry. With this ruling, Xpoint is excited to continue our momentum and deliver leading-edge solutions across the sector.
GeoComply Responds: Innovations Deserve Protection
In its statement to Bonus, GeoComply shared disappointment with the court’s final decision. Further, GeoComply restated that it believes “specific innovation” deserves protection from “improper infringement.”
Its response also focused on its commitment to industry-leading innovation and pride in championing fair competition.
Throughout this legal process, our commitment to serving our customers and delivering innovative solutions has remained as strong as ever. Our cutting-edge suite of solutions have never been about a single patent; they are the result of our decade-plus experience, the expertise of our team, and our unrelenting focus on customer success. This innovation is demonstrated through GeoComply’s proven track record of service delivery, reliability, and scalability. Our industry-leading platform processes over 1.2 billion transactions per month in a dynamic, context-aware system logic, all while consistently maintaining over 99.99% uptime and achieving over 99% pass rates. Our focus on creating and delivering industry-leading geolocation compliance and anti-fraud technology continues to drive us forward.
We are disappointed by the court decisions related to patent law technicalities, and while we respect the judicial process, we stand firm in our belief that this specific innovation within our groundbreaking technology deserves protection from improper infringement. GeoComply takes pride in championing fair competition in the marketplace and promoting start-up innovators who challenge incumbents and strengthen the industry. However, when we believed our proprietary technology rights were being violated, we could not stand by without defending our innovation. GeoComply remains committed to promoting competition while still protecting our broad intellectual property rights.
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