GeoComply's patent infringement lawsuit against competitor Xpoint has been dismissed by a Washington DC appeals court, potentially opening up the geolocation services market in the US gambling industry.

The dispute began in 2022 when GeoComply sued Xpoint over alleged infringement of its "Geolocation Engine" patent after Xpoint entered the US market through a partnership with PlayStar in New Jersey. GeoComply claimed the infringement caused "irreparable harm" and sought injunction and damages.

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 advance in computing technology" and relied on generic computer hardware components.

The US Court of Appeals for the Federal Circuit upheld this decision, dismissing the case without publishing their reasoning. Xpoint celebrated the ruling, stating it confirms their right to "operate and innovate freely" in the geolocation technology space and prevents monopolization of vital services.

GeoComply expressed disappointment with the outcome while maintaining their commitment to protecting their intellectual property rights. The company emphasized their support for fair competition and innovation in the marketplace, but defended their decision to protect their proprietary technology from what they viewed as improper infringement.

This ruling may significantly impact the US online gambling industry by creating more competition in the geolocation services sector, which is crucial for ensuring state-specific gambling compliance.

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