Upstart Geolocation Company Xpoint Gets Big Win From Delaware Judge

Written By Nicholaus Garcia on February 13, 2023
delaware district geocomply lawsuit geolocation technology

A Delaware judge dismissed a lawsuit by GeoComply to stop geolocation competitor Xpoint from allegedly infringing on its patent.

On Friday, Judge William Bryson of the United States District Court of Delaware found GeoComply’s geolocation patent invalid. 

In October, GeoComply filed the lawsuit claiming Xpoint was expanding its business using GeoComply technology. Although this chapter comes to close experts are speculating it might not be the end of the lawsuit. 

Big victory for the little guy in GeoComply lawsuit

Xpoint CEO Marvin Sanderson said Xpoint celebrated its Super Bowl two days early and the company is just getting started. 

“I am proud that Xpoint emerged victorious. We feel vindicated that the court recognized GeoComply had no right to monopolize this business-critical service. We look forward to providing our technology more broadly across the gaming industry in the months to come.”

Bryson’s 43-page order found GeoComply’s patent invalid because it attempts to claim unpatentable subject matter. 

In a statement, Xpoint said:

“Xpoint appreciates the District Court’s well-reasoned dismissal of GeoComply’s meritless allegations. By granting Xpoint’s motion to dismiss and invalidating GeoComply’s only United States patent in the process, Judge Bryson ensured that the United States geolocation market remains open for competition.” 

The statement continues:

“The court’s decision reiterates what Xpoint has maintained all along: GeoComply’s lawsuit was simply a desperate attempt to stifle competition and innovation in order to maintain its market position. Xpoint has and will continue to innovate, expand, and disrupt the geolocation marketplace. Disruption and change in any industry usually leads to attacks like the one we experienced from GeoComply — Xpoint will continue to aggressively defend its rightful place in the market.”

GeoComply evaluating next steps

In response to Bryson’s ruling, GeoComply said it would evaluate its next steps, saying the order only focused on “technical patent matters.”

“When we embarked on this process, as with any serious litigation, we did so with full awareness that there would be twists and turns along the way,” the company said in a statement. 

“So far, it has not failed to deliver on those fronts. Many questions have been exposed that remain unanswered, including the publicly available 2022 third-party report, which concluded that XPoint is “directly copying the [GeoComply] code. It’s important to note that today’s decision only concerns technical patent matters. It does not address any of the various other troubling matters identified in the 2022 report and elsewhere — we respectfully disagree with this particular decision and are evaluating next steps in all available forums.” 

Photo by PlayUSA
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Nicholaus Garcia

Nick Garcia is a senior reporter for PlayUSA. Garcia provides analysis and in-depth coverage of the gambling industry with a key focus on online casinos, sports betting and financial markets. Garcia has been covering the US gambling market since 2017. He attended Texas Tech University as an undergrad and received a Master of Arts in Journalism from Columbia College Chicago.

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