Geolocation – the technology that allows a provider of internet services to know the location of a consumer beyond a doubt – is critical to the way US online casinos and sportsbetting sites operate. One of the pioneers and a well-established concern in the realm is GeoComply.
The company recently filed suit for patent infringement against a newer company, Xpoint, based on how a consumer’s location is determined.
According to an article in Legal Sports Reports, GeoComply filed suit against the company on September 27, following the company’s first activities in the US marketplace. The suit purportedly makes mention of Xpoint’s work with a PlayStar and its online casino, initially a New Jersey operation. Two New Jersey sports books – Sporttrade and Mojo are also mentioned as using Xpoint’s services, according to the report.
GeoComply is reportedly seeking to protect its patent and pursuing other relief.
Confident in the Merits of the Case
The company said in a 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.”
According to the report, GeoComply is alleging that Xpoint is violating one of its patents by utilizing the same data collection methods GeoComply owns and uses in order to execute its own geolocation tech.
US Patent 9,413,805B2 was granted to GeoComply as of August 9, 2016.
Geolocation is Part of Online Gambling
Nearly all online casinos use geolocation as part of the HTML5 instant play gaming framework, but most of it is as simple as reading a browser’s IP address. Some operators go a step further and attempt to determine if a visitor is using a VPN or other location masking technology. GeoComply’s methods are much more specific and undefeatable – something regulators in US states insist on so they can be confident a player just across the border of a state or anywhere else cannot participate in real money gambling.
The lawsuit alleges that Xpoint knew it was abusing intellectual property.
“On information and belief, XPoint knows and at all relevant times knew that the XPoint geolocation software is made or adapted for use in an infringement of one or more claims”
Xpoint would not comment further but said the allegations were without merit.
Information detailing GeoComply’s allegations was provided as follows:
“A method for determining a geo-location, the method comprising:
transmitting a request to a first server by a first device;
collecting geolocation data associated with the first device in response to the request, the geolocation data collected by a module stored in memory and executed by a processor on the first device, the first device in communication with the first server which provides a service over a network;
identifying that one or more selected programs are present at the first device;
transmitting the geolocation data and programs and a list of the present selected programs to a second server;
receiving a geolocation message from the second server, the geolocation message generated at least in part from the geolocation data and a list of the present selected programs;
providing the received geolocation message to the first server.”
Xpoint has until Oct. 20 to answer the complaint.
Source: GeoComply Sues Xpoint For Patent Infringement, Legal Sports Reports, October 4, 2022