GeoComply's patent infringement lawsuit against competitor Xpoint has been dismissed by an appeals court in Washington DC, potentially signaling a more open market for geolocation services in the gambling industry.

The dispute began in 2022 when Canada-based GeoComply sued Xpoint, alleging infringement of its patented "Geolocation Engine" after Xpoint entered the US market through a partnership with PlayStar in New Jersey. GeoComply sought an injunction and damages, claiming the alleged infringement forced them to compete against their own patented technology.

Delaware US Circuit Judge William Bryson initially dismissed the case in 2023, ruling that GeoComply's patent was too broad and lacked sufficient technological innovation. The judge noted that the patent didn't demonstrate any meaningful advancement in computing technology and relied on generic hardware components.

The US Court of Appeals for the Federal Circuit upheld this decision, dismissing the case without publishing their reasoning. Xpoint welcomed the ruling, stating it confirms their right to operate and innovate freely in the geolocation technology space. The company emphasized that no single entity should monopolize essential geolocation services.

GeoComply expressed disappointment with the outcome while maintaining their belief in protecting their technology from "improper" infringement. The company stated their commitment to fair competition and supporting industry innovation, while also defending their intellectual property rights when necessary.

This ruling may have significant implications for the gaming industry, potentially leading to increased competition and choices for gaming operators in geolocation services, which are crucial for ensuring compliance with state-specific gambling laws.

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