GeoComply Seeks Injunction Against Competitor XPoint Over Alleged IP Breach

USA Legal Betting


  • XPoint said there a legal precedent protecting it from the injunction
  • Start-up gaming entity Out the Gate (OTG) has also been subpoenaed
  • OTG claims GeoComply cited an outdated report while making its case

GeoComply Solutions, a technology company that provides geo-tracking data to gambling companies, wants an injunction on a competitor it claims breached patent laws.

XPoint services is being accused of also using geolocation services to supply data to gaming entities. GeoComply first raised the issue with its smaller competitor four months ago and submitted its latest request last Friday.

If the injunction is granted, XPoint will be forced to halt its processes immediately.

Basic disagreement

GeoComply has worked with the biggest figures in the gambling scene, whether that be giant corporations such as FanDuel and DraftKings, or state authorities and regulators. Their data reveals betting habits and trends, the number of transactions, and the amount of geographically unique areas gamblers place wagers in. 

GeoComply says that it tracks over 10 billion transactions every year across over 400 million mobile devices. 

The company released a statement addressing the ongoing legal situation with XPoint and said that it embraces competition but not stolen ideas.

On Friday, Jan. 27, GeoComply filed a preliminary injunction motion to immediately stop XPoint from continuing to sell what we believe is our stolen intellectual property, during the pendency of this lawsuit,” read the statement. “As we have shared repeatedly, GeoComply welcomes healthy competition and new ideas; intellectual property theft is neither.” 

While GeoComply’s legal team is going hard at XPoint, the latter believes that it is protected from any legal repercussions because of precedent. According to them, judges have already ruled that geolocating services cannot be patented, and GeoComply’s case is baseless.

“...The claims neither recite an improvement to conventional methods for detecting programs nor specify how the program information is used to verify geolocation data,” XPoint’s court motion said. “The patent thus claims only an abstract result—not a patent-eligible technological improvement.” 

XPoint has already filed a motion with US District Judge William C. Bryson to dismiss the case. He discussed the motion to dismiss during a teleconference Tuesday.

Betraying trust

While on the teleconference, judge Bryson also discussed GeoComply’s motion to involve gaming operator Out The Gate (OTG). OTG was already subpoenaed and is expected to become heavily involved in the case.

However, OTG, a New Jersey-based start-up, said in early January that GeoComply betrayed its trust by going public with “an outdated, confidential report.”

OTG started to make noise in the gambling scene last year and was recently approved for an Ohio sports betting license through a partnership with high school SPIRE Institute.

The company’s president, Joe Brennan, Jr., revealed that OTG used data from both GeoComply and XPoint before deciding on which one they wanted to move forward with full-time. He also clarified that OTG never possessed the source code of either company.

While OTG’s relationship with GeoComply has frayed, it revealed that it still has a strong relationship with XPoint, the current provider of its user data.

“When we shared our report with XPoint, they promptly addressed all our concerns to our satisfaction,” said an OTG statement posted on Brennan Jr.’s Twitter. “Their responsiveness, in addition to the performance of their platform and having been licensed and certified by New Jersey and other states to provide geolocation services to their regulated gambling markets, is why we chose XPoint over GeoComply to be our provider.”

The case is still ongoing and will continue to be heard in court. GeoComply has been undeterred by XPoint’s responses or OTG’s criticism in its pursuit of an injunction.

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