DCT
3:21-cv-13405
WinView Inc v. DraftKings Inc
Key Events
Amended Complaint
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: WinView Inc. (Delaware)
- Defendant: DraftKings Inc. (Nevada), DraftKings Inc. (Delaware), and Crown Gaming Inc. (Delaware)
- Plaintiff’s Counsel: McElroy, Deutsch, Mulvaney & Carpenter, LLP
- Case Identification: 3:21-cv-13405, D.N.J., 11/15/2021
- Venue Allegations: Venue is alleged to be proper in the District of New Jersey because Defendants maintain regular and established places of business in the district, including offices in Hoboken and Atlantic City, and have committed acts of infringement there.
- Core Dispute: Plaintiff alleges that Defendant’s Sportsbook and Daily Fantasy Sports platforms infringe four patents related to equalizing signal latency in interactive gaming, managing gaming services based on user geo-location, and conducting multiple contests from a single user performance.
- Technical Context: The technology at issue operates within the U.S. online sports betting and daily fantasy sports market, an industry that has seen significant growth since a 2018 Supreme Court decision lifted federal restrictions on sports betting.
- Key Procedural History: The complaint alleges pre-suit communications regarding a potential business relationship and WinView’s intellectual property beginning in January 2018. It further alleges that in early 2019, WinView provided DraftKings with materials identifying the patents-in-suit or their pending applications. A final attempt at discussions in late 2020 was allegedly declined by DraftKings. These allegations form the basis for claims of willful infringement.
Case Timeline
| Date | Event |
|---|---|
| 2005-06-20 | ’543 Patent Priority Date |
| 2006-01-10 | ’988 Patent Priority Date |
| 2006-04-12 | ’243 and ’730 Patents Priority Date |
| 2018-01-30 | ’243 Patent Issue Date |
| Post-2018-05 | DraftKings launches its first mobile sportsbook in New Jersey |
| 2018-06-12 | ’730 Patent Issue Date |
| 2019-01 | WinView allegedly provides DraftKings with materials identifying patents |
| 2020-07-21 | ’543 Patent Issue Date |
| 2020-10-20 | ’988 Patent Issue Date |
| 2021-11-15 | Complaint Filing Date |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 9,878,243 - “Methodology for Equalizing Systemic Latencies in Television Reception in Connection with Games of Skill Played in Connection with Live Television Programming,” Issued January 30, 2018.
The Invention Explained
- Problem Addressed: The patent addresses the technical problem of unsynchronized television signal reception, where users receive broadcasts at different times depending on their delivery method (e.g., satellite, cable, online) (Compl. ¶24). This creates systemic latencies that can provide an unfair advantage or disadvantage to participants in interactive games of skill or chance played in conjunction with the live broadcast (Compl. ¶24).
- The Patented Solution: The invention claims a method to solve this problem by leveling the playing field. It proposes receiving an online broadcast of content, synchronizing the game data (such as betting propositions) directly with that online broadcast, and then presenting the broadcast content and the synchronized game data together to the user (Compl. ¶26). This approach seeks to create a common, synchronized experience for all players, regardless of their underlying television feed (Compl. ¶¶24-25).
- Technical Importance: This solution provides a technical framework for conducting fair and engaging interactive games tied to live events in a distributed environment with disparate signal delivery systems (Compl. ¶25).
Key Claims at a Glance
- The complaint asserts one or more claims, including independent claim 1 (Compl. ¶69).
- Claim 1 requires a method with the essential elements of:
- receiving an online broadcast of content;
- synchronizing the game of skill or chance with the online broadcast of content; and
- presenting the online broadcast of content and synchronized game data.
U.S. Patent No. 9,993,730 - “Methodology for Equalizing Systemic Latencies in Television Reception in Connection with Games of Skill Played in Connection with Live Television Programming,” Issued June 12, 2018.
The Invention Explained
- Problem Addressed: Like its related ’243 Patent, this patent addresses the problem of signal reception latencies among different users in a distributed gaming environment, which can undermine fairness (Compl. ¶24).
- The Patented Solution: The solution described is a server-side system. A central game server communicates with a group (a "cohort") of user devices and, critically, sends a "lockout signal at an appropriate time based on an amount of delay" to prevent users from submitting a response after an outcome is known (Compl. ¶27). Dependent claim 7 specifies that this delay "accounts for delays within a television signal reception path," suggesting a system that actively manages for different user broadcast delays (Compl. ¶28; ’730 Patent, col. 16:3-5).
- Technical Importance: This patent describes a server architecture designed to enforce fair play in live interactive gaming by actively managing betting windows based on calculated signal delays experienced by users (Compl. ¶25).
Key Claims at a Glance
- The complaint asserts one or more claims, including independent claim 1 and dependent claims 7 and 8 (Compl. ¶89).
- Claim 1 requires a game server comprising:
- a memory storing an application configured for:
- communicating with a plurality of Internet-connected devices grouped into a cohort; and
- sending a lockout signal at an appropriate time based on an amount of delay to prevent users from submitting a response;
- a processor for processing the application.
- a memory storing an application configured for:
U.S. Patent No. 10,721,543 - “Method Of and System For Managing Client Resources and Assets for Activities On Computing Devices,” Issued July 21, 2020.
Technology Synopsis
This patent addresses challenges in distributed entertainment services where legal and content restrictions vary by geographic location (Compl. ¶¶33-34). The invention describes a method using an "activity client" on a user's device, which determines the device's location to load appropriate service-related information from a server, downloads additional service-specific data when a user selects an option, and prevents activity where it is not permitted (Compl. ¶¶34, 36). The system is also designed to economize data usage by downloading only assets not already resident on the user's device (Compl. ¶35).
Asserted Claims
Independent claim 1 and dependent claim 9 (Compl. ¶106).
Accused Features
The complaint accuses DraftKings' services that monitor a user's geographic location to ensure compliance with state-specific laws for sports betting and fantasy sports, which involves presenting different information or blocking service based on that location (Compl. ¶¶112-114).
U.S. Patent No. 10,806,988 - “Method Of and System For Conducting Multiple Contests of Skill with a Single Performance,” Issued October 20, 2020.
Technology Synopsis
This patent addresses a method for enhancing user engagement by allowing a participant to use a single performance (e.g., one daily fantasy lineup) to compete simultaneously in multiple, distinct contests, each with different competitors and prize pools (Compl. ¶¶42-43). The patented solution is a server device that receives a single set of user "event selections," applies them separately to multiple user-selected contests, stores the results for each, and transmits separate, real-time standings for each contest to the user's device (Compl. ¶44).
Asserted Claims
Independent claim 1 (Compl. ¶130).
Accused Features
The complaint targets the "Bulk Enter" or "multi-enter" functionality in DraftKings' Daily Fantasy Sports platform, which allegedly allows users to enter a single lineup into multiple simultaneous contests (Compl. ¶¶60, 135).
III. The Accused Instrumentality
Product Identification
The accused instrumentalities are the DraftKings Sportsbook and DraftKings Daily Fantasy Sports online platforms, including their associated websites and mobile applications (Compl. ¶1).
Functionality and Market Context
- The DraftKings Sportsbook platform allows users to place bets on sporting events, including offering "Live In-Game" or "Flash Bets" on discrete events as a game unfolds, such as the result of an individual pitch in baseball (Compl. ¶¶52-53). The platform provides users with updated odds and prevents wagers when an outcome is imminent or known (Compl. ¶57). The complaint includes a screenshot of the DraftKings Sportsbook app showing live odds for an NBA game, illustrating the in-game betting interface (Compl. p. 20).
- The DraftKings Daily Fantasy Sports platform allows users to assemble fantasy lineups and enter them into contests to win prizes (Compl. ¶59). It is alleged to include a "Bulk Enter" feature that permits a user to enter a single lineup into multiple different contests simultaneously (Compl. ¶60).
- Both platforms are alleged to monitor the geographic location of the user's device to ensure compliance with state laws that regulate sports betting and fantasy sports, permitting or denying access to services based on the user's location (Compl. ¶62).
IV. Analysis of Infringement Allegations
U.S. Patent No. 9,878,243 Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| a. receiving an online broadcast of content; | The DraftKings system receives online data feeds for live sporting events, including scores, play status, and statistics. | ¶73, ¶75 | col. 2:45-56 |
| b. synchronizing the game of skill or chance or other entertainment with the online broadcast of content; | The DraftKings Sportsbook updates its betting propositions and odds in real time as the live sporting event unfolds, thereby synchronizing the betting game with the event content. | ¶76, ¶77 | col. 2:45-56 |
| c. presenting the online broadcast of content and synchronized game data. | The DraftKings application presents users with a graphical representation of the live event (e.g., a baseball diamond) alongside the synchronized, updated betting odds and propositions. | ¶78 | col. 2:45-56 |
Identified Points of Contention
- Scope Questions: The case may turn on the definition of "online broadcast of content." A central question for the court will be whether the sports data feeds and graphical representations alleged by the complaint meet the scope of this term, or if the patent's context, which focuses heavily on "television reception," limits the term to a more traditional video or audio stream.
U.S. Patent No. 9,993,730 Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| a. a memory for storing an application... | The memory on DraftKings' game servers, which store and run the DraftKings Sportsbook application. | ¶90, ¶92 | col. 4:3-5 |
| i. communicating with a plurality of Internet-connected devices grouped into a cohort; | DraftKings' servers communicate with users' mobile devices and computers; the complaint alleges a "cohort" is formed by the group of users accessing content for the same sporting event at a given time. | ¶92, ¶93 | col. 4:38-44 |
| ii. sending a lockout signal at an appropriate time based on an amount of delay... | The DraftKings Sportsbook prevents users from betting by graying out options or removing propositions, which the complaint alleges is timed to account for broadcast delays experienced by users. | ¶57, ¶94 | col. 4:10-15 |
| b. a processor for processing the application. | The processors that run the DraftKings game servers and execute the application logic. | ¶95 | col. 4:3-5 |
Identified Points of Contention
- Technical Questions: A key factual dispute will likely concern the basis for the "lockout signal." The complaint alleges the timing is "based on an amount of delay" that accounts for television signal reception paths. The core technical question is what evidence the complaint provides that the accused system calculates lockouts based on user-side broadcast delays, rather than simply reacting to game-state updates received by its own servers. A screenshot in the complaint depicting a "Next Bet Coming Soon" message illustrates this lockout feature in practice (Compl. p. 39).
V. Key Claim Terms for Construction
Term: "online broadcast of content" (’243 Patent, claim 1)
- Context and Importance: This term's construction is fundamental to the infringement analysis of the ’243 patent. The dispute will likely center on whether DraftKings' system of receiving proprietary data feeds and generating graphical representations qualifies as receiving a "broadcast," a term often associated with public television or radio transmissions.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The claim language itself does not explicitly limit the "content" to video or audio. An argument could be made that any real-time stream of information about an event over the internet constitutes an "online broadcast."
- Evidence for a Narrower Interpretation: The patent's title, abstract, and background section repeatedly reference "Television Reception." A party could argue this context limits the claim term "broadcast" to a television-like signal, not a stream of game statistics and play data.
Term: "lockout signal at an appropriate time based on an amount of delay" (’730 Patent, claim 1)
- Context and Importance: The infringement reading of the ’730 patent hinges on this phrase. Practitioners may focus on this term because the central technical question is whether DraftKings' system simply locks bets when an event occurs (a reactive system) or whether it calculates the lockout timing to account for the signal transmission delays experienced by different users (a proactive, delay-based system).
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: A party might argue that any lockout timed to prevent a user from exploiting information received via a delayed broadcast is inherently "based on an amount of delay," even if that delay is not explicitly calculated for each user group.
- Evidence for a Narrower Interpretation: Dependent claim 7 clarifies that the delay "accounts for delays within a television signal reception path" (’730 Patent, col. 16:3-5). This language, along with the specification's focus on equalizing the experience for users on cable, satellite, and other networks, suggests the "amount of delay" is a specific, calculated value tied to the physics of signal transmission, not a generic server-side timer.
VI. Other Allegations
Indirect Infringement
The complaint alleges induced infringement for all asserted patents, based on the theory that by providing the Sportsbook and Daily Fantasy Sports applications and instructing users on their use, DraftKings knowingly encourages and facilitates direct infringement by its customers (Compl. ¶¶79, 96, 120, 139).
Willful Infringement
The complaint alleges willful infringement based on pre-suit knowledge. It claims that WinView and DraftKings engaged in discussions as early as January 2018 and that WinView specifically provided DraftKings with materials identifying the patents-in-suit or their antecedent applications in early 2019 (Compl. ¶¶64-66). Willfulness is also alleged based on knowledge gained after the filing of the original complaint in the action (Compl. ¶¶81, 98, 122, 141).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of definitional scope: can the term "online broadcast of content," which is rooted in the patent's context of equalizing television reception, be construed to cover the proprietary sports data feeds and graphical game trackers used by the accused DraftKings platform?
- A key evidentiary question will be one of technical mechanism: what proof exists that the accused platform's betting "lockout" feature is technically implemented "based on an amount of delay" that specifically accounts for differing user signal reception paths, as required by the ’730 patent, rather than being a server-side function that merely reacts to the receipt of game-state updates?
- A central question for the '988 patent will be one of functional mapping: does the accused "Bulk Enter" feature, which allows a single fantasy lineup to be entered into multiple contests, perform the claimed server-side functions of receiving "event selections," separately applying them to "selected multiple contests," and "transmitting the multiple and separate standings," as recited in the asserted claim?