A federal appeals court in Washington DC has dismissed GeoComply's patent infringement lawsuit against competitor Xpoint, potentially opening up the US geolocation services market for online gambling compliance.

The dispute began in 2022 when Canada-based GeoComply sued Xpoint, claiming infringement of its patented "Geolocation Engine" after Xpoint entered the US market through a partnership with PlayStar in New Jersey. GeoComply sought injunctive relief and damages, arguing they were forced to "compete against their own patented invention."

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

The appeals court panel upheld this ruling on Friday, dismissing the case without publishing their reasoning. Xpoint celebrated the decision, stating it confirms their right to "operate and innovate freely in the geolocation technology space" and prevents monopolization of vital geolocation services.

GeoComply expressed disappointment but maintained they "stood firm" in protecting their technology from "improper" infringement. The company emphasized their support for fair competition while asserting the importance of defending their intellectual property rights.

This ruling may significantly impact the US online gambling industry by fostering increased competition in geolocation services, which are essential for ensuring state-specific gambling compliance.

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