The US Court of Appeals for the Federal Circuit has ruled in favour of Xpoint by upholding the dismissal of GeoComply’s patent infringement claims against its geolocation competitor.

Vancouver-based GeoComply filed a lawsuit in October 2022 in which it alleged that Xpoint had infringed upon the patent of a geolocation engine invented by GeoComply CEO and co-Founder Anna Sainsbury.

However, in February 2023, a Delaware judge approved Xpoint’s motion to dismiss the lawsuit, opining that GeoComply’s patent was too broad and general to be applicable. Judge William Bryson’s decision stated that “the idea of using multiple sources of information to verify a person’s locations is a longstanding business practice.”

He determined GeoComply’s patent failed the Alice test, which was established by a prior court case to determine whether a patent is considered an abstract idea or an actual application.

GeoComply appealed the decision, arguing that the patent had merit because the technology did more than determine location by also measuring reliability of locations.

However, the Court of Appeals has now ratified the Delaware decision.

Xpoint: Decision ‘shows no company can monopolize’ geolocation services

In a statement, Xpoint said that the decision “shows that no company can monopolize vital geolocation technology services and force their clients to work with them.”

“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,” added the statement. “The decision means that Xpoint can continue to operate and innovate freely in the geolocation technology space… Xpoint will vigorously pursue opportunities to create choice 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 ‘stands firm in belief that specific innovation deserves protection

GeoComply told Canadian Gaming Business in a statement that it is disappointed by the decision as the company felt it had to defend its innovation.

“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,” said a spokesperson. “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.”