FanDuel and DraftKings named in patent-infringement lawsuits

Summary

• FanDuel and DraftKings have been named in new patent-infringement lawsuits by Interactive Games LLC
• The lawsuits claim that five patents have been breached, with two related to the company’s mobile gambling technology
• The US Commerce Secretary has co-invented two of those patents putting the companies in an unusual legal spot with the USPTO

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FanDuel and DraftKings have been named in new patent infringement lawsuits by an affiliate of bond-trading company Cantor Fitzgerald. The lawsuits were filed in both New Jersey and Massachusetts. The lawsuits are Interactive Games LLC v. DraftKings ⁠Inc, U.S. ​District Court for the District of Massachusetts and the Interactive Games ​LLC v. FanDuel Inc, U.S. District Court for the District of New Jersey. The lawsuit in the Garden State has also mentioned Betfiar, a British betting exchange, as a co-defendant.

FanDuel and DraftKings are in fresh legal trouble over patent infringement

The patents belong to Cantor Gaming, which specializes in gambling technology and is now not operational, but the patents have been the property of Interactive Games LLC, yet another Cantor Affiliate. In its complaint, Interactive Games LLC claims that five of the mobile gambling technology patents were infringed upon by the defendants. Two of those patents were co-invented by Cantor Gaming employees and US Commerce Secreatry Howard Lutnick. The defendants' usual legalrecourse may prove difficult, as it would be standard practise to ask the US Patent and Trademark Office, which works under the Commerce Department, to review the patents that the claimants argue have been infringed. In this situation, however, Lutnick is a former CEO of Cantor Fitzgerald and Chairman at Interactive Games, two positions he vacated when he assumed his role as US Commerce Secretary.

US Commerce Secretary is too close to the case

His role overseeing the USPTO could create a perceived conflict of interest and raise suspicion among DraftKings and FanDuel’s as to the objectivity of this proces. However, the companies have challenged a case brought on by Interactive Gaming LLC back in 2016 when the company challenged them over patent infringement, with the case referred to the USPTO. At the same time, Interactive Games LLC has requested an unspecified amount of damages from the companies over the alleged five patent infringement. No company named as defendant in the lawsuits has commented publicly on these newest developments. Lutnick founded the now defunct Cantor Gaming in 2006.