DCT

3:25-cv-01143

WinView IP Holdings LLC v. DraftKings Inc

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 3:25-cv-01143, D.N.J., 02/10/2025
  • Venue Allegations: Plaintiff alleges venue is proper in the District of New Jersey because Defendants have 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 online sports betting, daily fantasy sports, and casino gaming products and services infringe nine patents related to technologies for online and mobile gaming, including methods for equalizing latency, managing multiple contests, and efficiently delivering assets to mobile devices.
  • Technical Context: The U.S. online sports betting and gaming market has expanded significantly since a 2018 Supreme Court ruling, creating a highly competitive environment where technological features that ensure fairness and enhance user experience are critical.
  • Key Procedural History: The complaint alleges that the parties engaged in partnership and investment discussions in 2019, during which Plaintiff disclosed its patent portfolio to Defendant under a non-disclosure agreement. The complaint also notes a prior lawsuit filed by Plaintiff’s predecessor against Defendant in the same district in July 2021, which asserted related, but different, patents.

Case Timeline

Date Event
2005-06-20 Earliest Priority Date for ’883 Patent
2006-01-10 Earliest Priority Date for ’189, ’880, and ’402 Patents
2006-04-12 Earliest Priority Date for ’770, ’237, ’020, ’771, and ’349 Patents
2018-08-01 Defendant launches its first mobile sportsbook in New Jersey
2019-01-01 Parties allegedly begin partnership discussions and due diligence
2021-07-07 Plaintiff's predecessor files prior litigation against Defendant
2021-11-30 U.S. Patent No. 11,185,770 Issues
2022-02-01 U.S. Patent No. 11,235,237 Issues
2022-05-24 U.S. Patent No. 11,338,189 Issues
2022-09-20 U.S. Patent No. 11,451,883 Issues
2023-06-13 U.S. Patent No. 11,678,020 Issues
2023-08-22 U.S. Patent No. 11,736,771 Issues
2024-03-05 U.S. Patent No. 11,918,880 Issues
2024-04-09 U.S. Patent No. 11,951,402 Issues
2024-06-11 U.S. Patent No. 12,005,349 Issues
2025-02-10 Complaint Filing Date

II. Technology and Patent(s)-in-Suit Analysis

U.S. Patent No. 11,185,770 - “Methodology for Equalizing Systemic Latencies in Television Reception in Connection with Games of Skill Played in Connection with Live Television Programming,” Issued November 30, 2021 (’770 Patent)

The Invention Explained

  • Problem Addressed: The patent describes the problem of "systemic propagation delays" in television signal delivery, where viewers receive the same live broadcast at slightly different times depending on their reception method (e.g., satellite, cable, over-the-air) (’770 Patent, col. 5:41-44). This creates an unfair advantage in real-time games synchronized with the broadcast, as some players may see an event unfold seconds before others (Compl. ¶42; ’770 Patent, col. 6:4-10).
  • The Patented Solution: The invention proposes grouping participants into "cohorts" based on their signal delivery system, determining the specific delay for each cohort, and then equalizing the game experience for all participants (’770 Patent, Abstract). This is achieved, for example, by adjusting the timing of a "lock out" signal that prevents users from submitting predictions after a key moment in the live event has occurred, thereby neutralizing any advantage from lower-latency reception (’770 Patent, col. 8:5-13).
  • Technical Importance: This technology was intended to ensure a level playing field for all participants in the nascent market for second-screen, real-time gaming synchronized with live television broadcasts (Compl. ¶49, ¶51).

Key Claims at a Glance

  • The complaint asserts independent claim 20 (Compl. ¶142).
  • The essential elements of method claim 20 include:
    • determining a geographic location of each device of a set of devices;
    • providing a content stream to each device based on the geographic location;
    • providing the game of skill or chance with the content stream, where users make selections related to events in the stream;
    • preventing entry of a selection after a result is known by sending a lockout signal, utilizing a person attending the events related to the streaming content, to prevent users from submitting a response; and
    • delivering the content stream and synchronized game data to each device.
  • The complaint does not explicitly reserve the right to assert dependent claims for this patent.

U.S. Patent No. 11,235,237 - “Methodology for Equalizing Systemic Latencies in Television Reception in Connection with Games of Skill Played in Connection with Live Television Programming,” Issued February 1, 2022 (’237 Patent)

The Invention Explained

  • Problem Addressed: Like the ’770 Patent, this patent addresses latency issues in synchronizing games played on an "Internet coupled device" with a live event, which can create unfair advantages for some players (’237 Patent, col. 1:47-56).
  • The Patented Solution: The invention claims a method for equalizing latency effects by storing game-related data files on a server, transmitting them to user devices, and then sending a "lockout signal" to prevent users from submitting a response after a game element's result is known (’237 Patent, Abstract). A key aspect of the solution is that the timing of this lockout signal is determined by "utilizing a person observing a television feed located remotely from the live event" (’237 Patent, cl. 1). This use of a human observer provides a practical mechanism to trigger the lockout at the correct moment.
  • Technical Importance: The approach of using a remote human observer provides a reliable way to manage real-time event lockouts without requiring complex and potentially error-prone automated signal analysis at each user's location, ensuring fairness in gameplay (Compl. ¶49).

Key Claims at a Glance

  • The complaint asserts independent claim 1 (Compl. ¶189).
  • The essential elements of method claim 1 include:
    • storing data files on a server which relate to the live event;
    • determining one or more game elements in the live event;
    • transmitting the files from the server to a plurality of Internet coupled devices; and
    • sending a lockout signal to prevent users from submitting a response after a result of the game element has been revealed, wherein determining a time of the lockout signal includes utilizing a person observing a television feed located remotely from the live event.
  • The complaint does not explicitly reserve the right to assert dependent claims for this patent.

U.S. Patent No. 11,338,189 - “Method of and System for Conducting Multiple Contests of Skill with a Single Performance,” Issued May 24, 2022 (’189 Patent)

  • Technology Synopsis: This patent addresses the technological problem of enabling users to participate in multiple, separate contests simultaneously based on their performance in a single event (e.g., a single fantasy sports lineup entered into multiple tournaments) (’189 Patent, Abstract). The solution involves a method where a device generates and presents a list of contests, receives user input selecting which contests to join with certain event selections (e.g., a player lineup), and then stores and transmits separated standings for each contest in real-time (Compl. ¶47, ¶48).
  • Asserted Claims: Independent method claim 24 is asserted (Compl. ¶231).
  • Accused Features: The complaint alleges that the "multiple-lineup" and "Bulk Enter" features of Defendant’s Daily Fantasy and Pick6 products infringe this patent (Compl. ¶¶94-96, 224).

U.S. Patent No. 11,451,883 - “Method of and System for Managing Client Resources and Assets for Activities on Computing Devices,” Issued September 20, 2022 (’883 Patent)

  • Technology Synopsis: The technology addresses the problem of inefficient memory and data management on mobile devices in gaming environments, which can cause slow performance and data congestion (’883 Patent, col. 1:45-55). The patented solution is a method implemented on a server that transmits only the necessary assets for executing an application that are not already resident on the user's device, thereby optimizing performance and reducing data usage (Compl. ¶44).
  • Asserted Claims: Independent method claim 20 is asserted (Compl. ¶279).
  • Accused Features: The complaint alleges that Defendant’s servers, which interact with its mobile applications to provide real-time game statistics and betting information, practice the claimed method by sending updated lists of assets to user devices during live events (Compl. ¶¶281, 285-286).

U.S. Patent No. 11,678,020 - “Methodology for Equalizing Systemic Latencies in Television Reception in Connection with Games of Skill Played in Connection with Live Television Programming,” Issued June 13, 2023 (’020 Patent)

  • Technology Synopsis: This patent, related to the ’770 and ’237 patents, addresses latency and fairness in mobile gaming linked to live events. The invention is a method of providing a game based on a user's location, where the game options are filtered based on the mobile device's geography (’020 Patent, cl. 1). A key element is "triggering a lockout signal to prevent users from submitting a response...including utilizing a person in physical attendance at the event to determine when to trigger the lockout signal" (Compl. ¶45, ¶49).
  • Asserted Claims: Independent method claim 1 is asserted (Compl. ¶319).
  • Accused Features: The complaint alleges that Defendant’s sports betting and casino products, which use geolocation to determine user eligibility and available games and which employ data from on-site personnel (via SportRadar) to trigger lockouts, infringe this patent (Compl. ¶¶321-322, 332).

U.S. Patent No. 11,736,771 - “Methodology for Equalizing Systemic Latencies in Television Reception in Connection with Games of Skill Played in Connection with Live Television Programming,” Issued August 22, 2023 (’771 Patent)

  • Technology Synopsis: This patent describes a server-based system for managing real-time games connected to a sports event. The technology's solution involves a server with memory storing an application that communicates with a plurality of user devices grouped into "cohorts" (’771 Patent, cl. 1). The server simultaneously transmits game files to devices within a cohort and sends lockout signals based on information from an observer of the sports event to prevent late entries.
  • Asserted Claims: Independent system claim 1 is asserted (Compl. ¶360).
  • Accused Features: The complaint alleges that Defendant’s servers, which store and run the applications for its real-time betting products, communicate with user devices grouped by the live event they are participating in (cohorts), and send lockout signals based on observer data, infringe this patent (Compl. ¶¶362, 367-369, 377).

U.S. Patent No. 11,918,880 - “Method of and System for Conducting Multiple Contests of Skill with a Single Performance,” Issued March 5, 2024 (’880 Patent)

  • Technology Synopsis: Related to the ’189 Patent, this technology describes a server-side method for managing multiple simultaneous competitions. The solution involves a server determining a user's physical location and eligibility to participate in competitive groups, providing those groups to the user, receiving the user's selections, and triggering a lockout signal at the server to prevent further input (’880 Patent, cl. 1).
  • Asserted Claims: Independent method claim 1 is asserted (Compl. ¶406).
  • Accused Features: The complaint alleges that Defendant’s Daily Fantasy and Pick6 products, which use server-side logic to determine user eligibility for contests based on location and skill, allow users to join multiple contests, and implement lockouts, infringe this patent (Compl. ¶¶408-410, 416).

U.S. Patent No. 11,951,402 - “Method of and System for Conducting Multiple Contests of Skill with a Single Performance,” Issued April 9, 2024 (’402 Patent)

  • Technology Synopsis: This patent describes a method programmed in the memory of a user's device for participating in multiple competitive groups. The solution involves the device determining a user's physical location and eligibility, receiving event selections from the user prior to an event, enabling simultaneous participation in multiple groups, and triggering a lockout signal on the device to prevent further input (’402 Patent, cl. 1).
  • Asserted Claims: Independent method claim 1 is asserted (Compl. ¶445).
  • Accused Features: The complaint alleges that Defendant’s Daily Fantasy and Pick6 mobile applications, which are software residing in the memory of user devices and perform the steps of determining eligibility, receiving user selections (lineups), and triggering lockouts, infringe this patent (Compl. ¶¶447, 450, 452, 455).

U.S. Patent No. 12,005,349 - “Synchronized Gaming and Programming,” Issued June 11, 2024 (’349 Patent)

  • Technology Synopsis: This technology addresses the synchronization of gaming with live video. The patented solution is a method of playing a game that comprises streaming video and game data, operating a program to display the data synchronized, and preventing user submissions via a lockout signal based on the video data (’349 Patent, cl. 1).
  • Asserted Claims: Independent method claim 1 is asserted (Compl. ¶491).
  • Accused Features: The complaint alleges that Defendant’s Sportsbook and Casino products, which provide synchronized live video streams and game data (e.g., betting odds) and use lockout signals to prevent wagers after an event has occurred, infringe this patent (Compl. ¶¶493, 495, 504).

III. The Accused Instrumentality

Product Identification

  • The accused instrumentalities are Defendant’s online and mobile gaming platforms, including the DraftKings Sportsbook, DraftKings Casino, DraftKings Daily Fantasy Sports, DK Horse, and DraftKings Pick6 (collectively, the "Accused Products") (Compl. ¶57).

Functionality and Market Context

  • The complaint alleges the Accused Products provide users with various forms of online gaming, including sports betting, casino games, and fantasy sports contests (Compl. ¶6). Key technical functionalities identified include:
    • Live In-Game Betting: Offering and continuously updating betting propositions and odds while a live sporting event is in progress (Compl. ¶70, ¶72).
    • Geolocation Filtering: Using services like GeoComply to monitor a user's physical location via GPS, Wi-Fi, or Bluetooth to ensure compliance with state-specific gaming laws, thereby determining which games and betting options are available to the user (Compl. ¶65-66). The complaint includes a screenshot from the DraftKings Sportsbook app showing a "Location Check" message that blocks a user in a non-permitted state (Compl. p. 32).
    • Content Streaming: Providing live video streams of sporting events or casino games (e.g., roulette) to users in permitted jurisdictions (Compl. ¶74, ¶150).
    • Lockout Functionality: Preventing users from placing wagers or making selections after a key event has occurred by sending "lockout signals" that disable the betting interface (Compl. ¶73).
    • Multi-Contest Entry: Providing features such as "Bulk Enter" that allow users to enter a single fantasy sports lineup into multiple, simultaneous contests (Compl. ¶96).
  • The complaint positions these products as central to Defendant’s business, which has experienced rapid revenue growth since launching its mobile sportsbook in New Jersey in 2018 (Compl. ¶59).

IV. Analysis of Infringement Allegations

’770 Patent Infringement Allegations

Claim Element (from Independent Claim 20) Alleged Infringing Functionality Complaint Citation Patent Citation
determining a geographic location of each device of a set of devices; The Accused Products use GeoComply to monitor the location of user devices via GPS, Bluetooth, and Wi-Fi to ensure compliance with state laws. ¶146 col. 7:42-49
providing a content stream to each device based on the geographic location; The DraftKings Sportsbook provides "Live Stream" and "Game Tracker" features to users, but only if they are located within a state that allows sports betting. ¶147 col. 3:9-13
providing the game of skill or chance...wherein the game...involves users making selections related to events that occur within the content stream; The Sportsbook app provides live betting propositions where customers make wagers (selections) related to events unfolding in the live streamed content. ¶152 col. 5:11-24
preventing entry of a selection...by sending a lockout signal, utilizing a person attending the events related to the streaming content, to prevent the users from submitting a response...; Defendant uses data from third-party provider SportRadar, which employs data scouts physically present at games to send event data that is used to trigger lockout signals to stop accepting bets. ¶154-¶156 col. 8:25-41
delivering the content stream and synchronized game data to each device of the set of devices. Defendant uses its own servers and AWS cloud servers to deliver live streaming content and synchronized game data, such as updated odds and game scores, to user devices. ¶159 col. 3:41-51

’237 Patent Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
a. storing the data files on a server which relate to the live event; Defendant operates its own servers and uses cloud-hosted AWS services (e.g., S3) to store data files related to the games, including historical data, user bets, and bet results. ¶193, ¶198 col. 4:2-4
b. determining one or more game elements in the live event; Defendant uses its own algorithms in combination with real-time data from third-party providers like SportRadar and BetGenius to determine game elements such as odds for live events. ¶200 col. 4:3-4
c. transmitting the files from the server to each of a plurality of Internet coupled devices corresponding to the one or more game elements; Defendant’s servers transmit game data updates to customer devices to provide up-to-date odds and statistics in near real-time, as illustrated by a provided system architecture diagram showing data flow from an "Event Stream Topic" to consumer groups. ¶202; Compl. p. 95 col. 4:5-8
d. sending a lockout signal to prevent users...wherein determining a time of the lockout signal includes utilizing a person observing a television feed located remotely from the live event. Defendant is alleged to rely on a "producer or bookmaker observing a low-latency television feed located remotely from the event" to determine when to trigger the lockout signal and prevent late bets. ¶203 col. 4:9-15

Identified Points of Contention

  • Scope Questions: A central dispute may arise over the meaning of "utilizing a person attending the events" (’770 Patent) or "utilizing a person observing a television feed" (’237 Patent). The complaint alleges that Defendant’s use of data from a third-party service (SportRadar), which in turn employs on-site scouts, meets this limitation. The court may need to decide whether this indirect reliance on a third party's employee constitutes "utilizing a person" as required by the claims, or if a more direct relationship is necessary.
  • Technical Questions: The complaint broadly equates Defendant's bet-closing mechanisms with the claimed "lockout signal." A technical question may be whether the accused system's function of graying out a betting option and displaying a "CLOSED" status, as shown in a screenshot (Compl. p. 98), is technically equivalent to the specific "lockout signal" described in the patents, which may have distinct implementation details.

V. Key Claim Terms for Construction

The Term: "lockout signal" (appears in asserted claims of the ’770 and ’237 Patents, among others)

  • Context and Importance: The infringement theory for multiple patents hinges on the allegation that Defendant’s system for preventing wagers after an event has occurred constitutes sending a "lockout signal." The construction of this term will be critical to determining whether the accused functionality meets this claim limitation. Practitioners may focus on this term because its definition could either broadly cover any mechanism that prevents user input or be limited to a specific technical implementation described in the specification.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The specification describes the signal's function as being "to prohibit the entry of predictions after the competitor sees the play begin to unfold" (’237 Patent, col. 5:39-42). This functional description may support an interpretation that covers any signal achieving that purpose.
    • Evidence for a Narrower Interpretation: The patents also refer to the "lock out" signal as described in U.S. Pat. No. 4,592,546, which may imply that the term carries the specific meaning and implementation details from that prior art reference (’237 Patent, col. 5:35-39). The specification also describes the signal as being "time stamped" in certain contexts, suggesting it may be more than a simple on/off command (’237 Patent, col. 5:42).

The Term: "utilizing a person" (appears in asserted claims of the ’770 and ’020 Patents as "utilizing a person attending the events" and in the ’237 Patent as "utilizing a person observing a television feed")

  • Context and Importance: This term is the lynchpin for the infringement allegations related to how lockouts are triggered. The dispute will likely center on whether Defendant's use of a data feed from a third-party service like SportRadar, which employs human scouts, constitutes "utilizing a person."
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The specification does not appear to explicitly require direct employment or control over the "person." Language such as utilizing "an employee of a game provider" (’770 Patent, col. 3:30-32) is presented as one possibility among others, which may suggest that indirect reliance on any person, regardless of their employer, falls within the claim's scope.
    • Evidence for a Narrower Interpretation: The specification frequently refers to the "game producer" or an "employee of a game provider" when describing the person who generates the signal (’770 Patent, col. 6:27-28, col. 7:30-34). This may support an argument that the claims envision a person who is part of, or at least directly integrated with, the game provider's operations, not an independent, third-party data collector.

VI. Other Allegations

Indirect Infringement

  • The complaint alleges inducement of infringement by asserting that Defendant provides instructional materials, user guides, and marketing that "encourage and increase customers' infringing use of the Accused Products" (Compl. ¶105, ¶170). Specific examples cited include the "Help Center," which provides guides on "How to Play Daily Fantasy Sports" and "How to Play Casino Games," thereby allegedly instructing users on how to perform the infringing methods (Compl. ¶172).

Willful Infringement

  • Willfulness is alleged based on extensive pre-suit knowledge of Plaintiff’s patent portfolio. The complaint details 2019 meetings, the execution of an NDA, and Defendant's due diligence, during which Plaintiff allegedly provided Defendant with presentations and a "Status Report" identifying the patent families of the Asserted Patents (Compl. ¶¶120-129). The complaint further bases its willfulness claim on Defendant's knowledge from a prior patent infringement lawsuit filed in 2021 (Compl. ¶132).

VII. Analyst’s Conclusion: Key Questions for the Case

  • A core issue will be one of definitional scope: can the claim term "utilizing a person," which is central to the latency-equalization patents, be construed to cover an indirect reliance on third-party data scouts employed by a service like SportRadar, or does the claim require a more direct operational link between the game provider and the human observer?
  • A second central question will be one of technical operation: does the accused multi-contest functionality in Defendant's fantasy sports products, which allows users to enter one lineup into many contests, operate in the specific manner recited by the method claims of the ’189 and related patents, particularly with respect to how standings are stored, separated, and transmitted for each distinct contest?
  • A key evidentiary question will be one of pre-suit knowledge and intent: given the detailed allegations of partnership discussions, due diligence, and prior litigation, what specific information regarding the Asserted Patents was actually conveyed to Defendant, and does this evidence rise to the level of "wanton, malicious, and egregious" conduct required to support a finding of willful infringement?