DCT

3:25-cv-01146

WinView IP Holdings LLC v. FanDuel Inc

Log In

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 3:25-cv-01146, D.N.J., 02/10/2025
  • Venue Allegations: Venue is alleged to be proper based on Defendant's commission of infringing acts within the district and its operation of regular and established places of business, including retail sportsbook locations in East Rutherford and Atlantic City, New Jersey.
  • Core Dispute: Plaintiff alleges that Defendant’s online sports betting, daily fantasy sports, and casino gaming platforms infringe nine patents related to technologies for synchronizing interactive gaming with live events, equalizing for television signal latency, managing user competitions, and optimizing asset delivery to mobile devices.
  • Technical Context: The technology addresses foundational challenges in the online gaming and sports betting industry, where creating a fair and engaging real-time experience for users watching geographically dispersed live broadcasts is of significant market importance.
  • Key Procedural History: The complaint alleges that the parties engaged in discussions regarding a potential partnership or investment beginning in 2017, which included FanDuel conducting due diligence on Plaintiff's patent portfolio under a non-disclosure agreement in 2019. Plaintiff’s predecessor-in-interest also filed a prior lawsuit against Defendant in 2021 asserting infringement of patents that are family members of the currently asserted patents, which may be relevant to allegations of pre-suit knowledge and willfulness.

Case Timeline

Date Event
2005-06-20 Earliest Priority Date for ’883 Patent
2006-01-10 Earliest Priority Date for ’189, ’880, ’402 Patents
2006-04-12 Earliest Priority Date for ’770, ’237, ’020, ’771, ’349 Patents
2018-05-01 U.S. Supreme Court strikes down Professional and Amateur Sports Protection Act
2019-01-01 WinView meets with FanDuel CEO under NDA to discuss patent portfolio
2021-07-19 Prior lawsuit filed by WinView, Inc. against FanDuel, Inc.
2021-11-30 ’770 Patent Issued
2022-02-01 ’237 Patent Issued
2022-05-24 ’189 Patent Issued
2022-09-20 ’883 Patent Issued
2023-06-13 ’020 Patent Issued
2023-08-22 ’771 Patent Issued
2024-03-05 ’880 Patent Issued
2024-04-09 ’402 Patent Issued
2024-06-11 ’349 Patent Issued
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"

  • Patent Identification: 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.

The Invention Explained

  • Problem Addressed: The patent addresses the technical problem of latency in television signal reception, where geographically dispersed viewers of a live event receive the broadcast at slightly different times, creating an unfair competitive advantage for those who see the action unfold earlier in skill-based games played in connection with the broadcast (Compl. ¶33, ¶42; ’770 Patent, col. 1:43-56).
  • The Patented Solution: The invention proposes a method to solve this problem by determining the delay each viewer experiences, grouping viewers into "cohorts" with similar reception systems, and then equalizing the game experience for all participants. A key feature is the use of a "lock out" signal, triggered by a person attending the live event, to prevent users from making game selections after a play's result is known, thereby neutralizing the advantage of a lower-latency feed (Compl. ¶40; ’770 Patent, Abstract; Fig. 1).
  • Technical Importance: This technology aims to ensure fairness in the real-time, interactive online gaming and sports betting markets, which is critical for user confidence and regulatory compliance (Compl. ¶40, ¶41).

Key Claims at a Glance

  • The complaint asserts independent claim 20 (Compl. ¶117, ¶124).
  • The essential elements of 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 customers make selections related to events that occur within the content 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 the customers from submitting a response; and
    • delivering the content stream and synchronized game data to each device of the set of devices.
  • 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"

  • Patent Identification: 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.

The Invention Explained

  • Problem Addressed: Similar to the '770 Patent, this patent addresses latency issues that create unfair advantages among participants in games synchronized with live television events (Compl. ¶33, ¶42; ’237 Patent, col. 1:49-62).
  • The Patented Solution: The invention describes a server-based method for equalizing latency. The method involves storing game-related data files on a server, determining game events, transmitting those files to user devices, and crucially, sending a lockout signal to prevent responses after a game element's result is known. The timing of this lockout signal is determined by utilizing a person observing a television feed located remotely from the live event, which allows for compensation of broadcast delays (’237 Patent, Abstract; Fig. 3).
  • Technical Importance: This approach provides a specific technical framework for a server to manage and synchronize gameplay across numerous devices experiencing different signal delays, a core requirement for scalable online betting platforms (Compl. ¶42, ¶43).

Key Claims at a Glance

  • The complaint asserts independent claim 1 (Compl. ¶163, ¶170).
  • The essential elements of 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 each of a plurality of Internet coupled devices; and
    • sending a lockout signal to prevent customers from submitting a response after a result...has been revealed, wherein determining the 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"

  • Patent Identification: 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 (Compl. ¶25).
  • Technology Synopsis: The patent addresses inefficiencies in Daily Fantasy sports where users often faced long odds in large, open tournaments. The invention enables users to enter a single performance or lineup into multiple, separate contests simultaneously, allowing them to compete against different groups (e.g., beginners only, friends) with the same set of event selections (Compl. ¶38, ¶39).
  • Asserted Claims: Independent claim 24 is asserted (Compl. ¶214).
  • Accused Features: The FanDuel Fantasy Sports ("FD Fantasy") product is accused of infringement, specifically its functionality that allows users to create a lineup and enter it into multiple distinct contests that run simultaneously (Compl. ¶89, ¶222).

U.S. Patent No. 11,451,883 - "Method of and System for Managing Client Resources and Assets for Activities on Computing Devices"

  • Patent Identification: 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 (Compl. ¶26).
  • Technology Synopsis: The technology addresses the problem of inefficiently managing application assets on mobile devices, which have limited memory and processing power. The invention provides a method for a server to identify which assets necessary for an application are already on a user's device and to transmit only the missing assets, optimizing performance and reducing data usage (Compl. ¶35, ¶37).
  • Asserted Claims: Independent claim 20 is asserted (Compl. ¶255).
  • Accused Features: All Accused Products are implicated. The complaint alleges that when providing live, in-game betting, FanDuel's servers continuously communicate with user devices, transmitting lists of new assets (e.g., updated odds, game statistics) and that only the assets not already resident on the device are sent (Compl. ¶¶265-266, ¶270).

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"

  • Patent Identification: 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 (Compl. ¶27).
  • Technology Synopsis: This patent covers a method for providing location-based gaming experiences tied to a live event. The invention involves determining a mobile device's location, providing a game based on that location, receiving user input, and triggering a lockout signal based on input from a person physically attending the event to ensure fairness (Compl. ¶36, ¶40).
  • Asserted Claims: Independent claim 1 is asserted (Compl. ¶297).
  • Accused Features: The FanDuel Sportsbook and Casino products are accused. The complaint alleges they determine a user's geographic location to provide state-specific betting options (a location-based game) and use data from scouts physically present at events to trigger lockout signals (Compl. ¶301, ¶310).

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"

  • Patent Identification: 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 (Compl. ¶28).
  • Technology Synopsis: This patent describes a server configured to manage real-time games synchronized with a sports event. The server application communicates with devices grouped into cohorts, stores game files, transmits those files to the cohorts, and sends lockout signals based on information from an observer of the sports event to prevent delayed responses (Compl. ¶42).
  • Asserted Claims: Independent claim 1 is asserted (Compl. ¶337). The complaint also references claim 53 in its analysis but this appears to be a typo for claim 1, as the infringement count only mentions claim 1.
  • Accused Features: The FanDuel Sportsbook, Casino, and Racing products are accused. The complaint alleges FanDuel's servers store applications for real-time gaming, group users into cohorts for each event, transmit game files (odds, stats), and send lockout signals based on data from observers (scouts) (Compl. ¶¶343, 345, 351, 354).

U.S. Patent No. 11,918,880 - "Method of and System for Conducting Multiple Contests of Skill with a Single Performance"

  • Patent Identification: 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 (Compl. ¶29).
  • Technology Synopsis: This invention describes a server-based method for managing competitive gaming groups. The server determines a user's physical location and eligibility, provides a set of competitive groups to join, receives user selections of groups and event predictions, and triggers a lockout signal to prevent further input (Compl. ¶38, ¶41).
  • Asserted Claims: Independent claim 1 is asserted (Compl. ¶384).
  • Accused Features: The FD Fantasy product is accused. It allegedly determines user location and eligibility to present a list of competitive groups (e.g., "Beginner Contests"), receives user input to join multiple groups and make event predictions, and uses lockout signals to close contests (Compl. ¶¶387-391, ¶393).

U.S. Patent No. 11,951,402 - "Method of and System for Conducting Multiple Contests of Skill with a Single Performance"

  • Patent Identification: 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 (Compl. ¶30).
  • Technology Synopsis: This patent describes a method programmed in a device's memory for participating in multiple competitive groups. The method includes determining the user's location and eligibility, receiving event selections from the user before an event begins, and triggering a lockout signal on the device to prevent further input (Compl. ¶38, ¶41).
  • Asserted Claims: Independent claim 1 is asserted (Compl. ¶422).
  • Accused Features: The FD Fantasy product is accused. The complaint alleges the FD Fantasy app, stored in the memory of a user's device, determines user location to establish eligibility for certain contests, receives user selections for a fantasy lineup before games start, and triggers lockout signals to prevent late entries (Compl. ¶¶424, 427-428, ¶430).

U.S. Patent No. 12,005,349 - "Synchronized Gaming and Programming"

  • Patent Identification: U.S. Patent No. 12,005,349, "Synchronized Gaming and Programming," issued June 11, 2024 (Compl. ¶31).
  • Technology Synopsis: This patent describes a method of playing a game that involves streaming both video data and game data, and operating a program to display them in a synchronized manner. The method includes preventing customer responses based on the video data and a lockout signal (Compl. ¶42).
  • Asserted Claims: Independent claim 1 is asserted (Compl. ¶458).
  • Accused Features: The FanDuel Sportsbook, Casino, and Racing products are accused. They allegedly stream video and game data (e.g., live sports feeds and betting odds), display them synchronously in the app, and use lockout signals to prevent wagers after an event has occurred (Compl. ¶¶462, 469, ¶470).

III. The Accused Instrumentality

Product Identification

The accused instrumentalities are the FanDuel Sportsbook, FanDuel Casino, FanDuel Racing, and FanDuel Fantasy Sports platforms, offered through websites and mobile applications for iOS and Android (collectively, the "Accused Products") (Compl. ¶48, ¶53).

Functionality and Market Context

The Accused Products provide users with online platforms for sports betting, casino games, and daily fantasy sports. The complaint alleges that a core functionality is offering real-time, "in-play" wagering that is synchronized with live sporting and casino events (Compl. ¶69, ¶126). To comply with state laws, the platforms use geolocation technology to verify a user is in a permitted jurisdiction before allowing wagers (Compl. ¶57, ¶65). This is demonstrated by a screenshot showing the FanDuel Racing app requiring the user's precise location to be enabled (Compl. p. 36). The platforms allegedly use "lockout signals" to prevent users from placing bets after a key game event has occurred, which is essential for fair play (Compl. ¶77). The complaint further alleges these lockouts are timed using data from third-party "data scouts" who are physically present at live events (Compl. ¶136). The fantasy sports platform is alleged to provide functionality for users to enter a single lineup into multiple different contests simultaneously (Compl. ¶89). FanDuel is described as a major digital sports entertainment and gaming company in the United States, operating in numerous states and generating substantial revenue from the Accused Products (Compl. ¶6, ¶50).

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 determine the geographic location of customer devices using GPS, Wi-Fi, and third-party services like GeoComply to ensure compliance with state gaming laws. ¶128 col. 4:51-53
providing a content stream to each device based on the geographic location; The FD Sportsbook provides live video streams of games to users, and access to these streams is restricted based on the user's determined geographic location. A screenshot shows a stream being unavailable due to the user's location (Compl. p. 61). ¶¶129-131 col. 4:51-53
providing the game of skill or chance or other entertainment with the content stream, wherein the game...involves customers making selections related to events that occur within the content stream; The Accused Products provide betting options (the "game") such as moneyline bets that are displayed concurrently with and relate to the events occurring in the live content stream. ¶133 col. 5:21-34
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 the customers from submitting a response...; FanDuel sends lockout signals to prevent untimely wagers and relies on data from "data scouts" (e.g., from Sportradar) who are physically present at games to determine the real-time occurrence of events used to trigger the lockouts. ¶¶135-136 col. 6:18-33
delivering the content stream and synchronized game data to each device of the set of devices. The FD Sportsbook application presents the live broadcast of a sporting event alongside synchronized game data, such as updated odds and propositions. ¶¶140-141 col. 1:1-8

’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; FanDuel operates its own servers and uses AWS cloud-hosted services to store various data files related to the betting games, including historical game data and user bets. A screenshot shows a user's bets being sent to and retrieved from FanDuel's servers (Compl. p. 83). ¶¶174-175, ¶179 col. 2:50-52
b. determining one or more game elements in the live event; FanDuel determines the status of games and game elements (e.g., odds for live events) using its own algorithms in combination with real-time data from third-party providers like Sportradar. ¶181 col. 2:52-53
c. transmitting the files from the server to each of a plurality of Internet coupled devices corresponding to the one or more game elements; FanDuel's servers transmit data files containing game statistics and betting odds updates to a plurality of customer devices to provide data in near real-time. ¶¶182-183 col. 2:54-57
d. sending a lockout signal to prevent customers from submitting a response...after a result...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 alleges that FanDuel relies on a bookmaker or producer observing a low-latency television feed, located remotely from the live event, to determine when to trigger the lockout signal that prevents untimely wagers. ¶184 col. 2:58-67

Identified Points of Contention

  • Scope Questions: A central question may be whether FanDuel's system of disabling betting markets constitutes "sending a lockout signal" as the term is used in the patents. Defendant could argue its functionality is a standard market management technique, not the specific latency-equalizing signal described. Furthermore, the patents require "utilizing a person," either attending an event or observing a remote feed. A point of contention could be whether FanDuel's use of data from third-party scouts who input event occurrences into software meets this "utilizing a person" limitation, or if the system is better characterized as an automated one that merely consumes a data feed.
  • Technical Questions: What specific technical evidence does the complaint provide that the lockout timing for the '237 Patent is based on a person observing a remote television feed (as claimed), versus the '770 Patent's allegation of a person attending the event? The complaint alleges both practices, mapping them to different patents, which suggests the factual basis for each specific allegation will be a point of discovery and dispute.

V. Key Claim Terms for Construction

  • The Term: "lockout signal"

  • Context and Importance: This term is the core mechanism for achieving the patents' stated goal of preventing latency-based advantages. Its construction will be critical, as infringement may depend on whether FanDuel’s method for closing betting markets is technically equivalent to the claimed "signal." Practitioners may focus on this term because it appears to be a neologism tied to the patent's specific solution, rather than a standard term of art.

  • Intrinsic Evidence for Interpretation:

    • Evidence for a Broader Interpretation: The specification describes the function of the signal as being "to prohibit the entry of predictions after the competitor sees the play begin to unfold" ('770 Patent, col. 6:21-23). This functional language could support a broader definition encompassing any electronic instruction that prevents a user's input.
    • Evidence for a Narrower Interpretation: The specification repeatedly refers to a "time stamped 'lock out' signal" ('770 Patent, col. 6:20-21), which could suggest a narrower construction requiring a signal that carries specific timing data used by the client device to implement the lockout, rather than a simple server-side command to close betting.

  • The Term: "utilizing a person"

  • Context and Importance: This term connects the automated system to a human element, which may be a key point of novelty. The dispute may turn on the degree of human involvement required to meet this limitation. The defendant might argue its system relies on an automated data feed, not a "person."

  • Intrinsic Evidence for Interpretation:

    • Evidence for a Broader Interpretation: The '770 patent claims "utilizing a person attending the events...to prevent the customers from submitting a response" (Claim 20). This could be broadly read to include a data scout whose electronic inputs are the ultimate cause of the lockout, even if mediated by an algorithm.
    • Evidence for a Narrower Interpretation: The language could be interpreted more narrowly to require a person exercising judgment about when to trigger the lockout, rather than simply recording the occurrence of an event. The complaint's description of Sportradar scouts who "press[es] the button [on the software]...and it goes live" could be framed by a defendant as mere data entry, not the "utilization" of a person to "determine when to trigger" the signal as required by other patents in the family (Compl. ¶136, ¶310).

VI. Other Allegations

  • Indirect Infringement: The complaint alleges inducement of infringement across all asserted patents, stating that FanDuel instructs and encourages customers to use the Accused Products in an infringing manner through its websites, mobile applications, FAQs, tutorials, and marketing promotions (e.g., Compl. ¶¶150-155, 197-199). Contributory infringement is also alleged on the basis that the Accused Products are material components for practicing the inventions and are not staple articles of commerce suitable for substantial non-infringing use (Compl. ¶157, ¶201).
  • Willful Infringement: The complaint alleges willful infringement based on extensive pre-suit knowledge. It asserts that FanDuel was aware of Plaintiff's technology and patents as early as 2017, and that in 2019, under an NDA, FanDuel conducted due diligence and received an "intellectual property 'Status Report'" that identified parent applications and family members of the asserted patents (Compl. ¶¶111-113, 145). The complaint also points to a prior lawsuit filed in 2021 involving related patents as further evidence of knowledge (Compl. ¶114).

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

  • A core issue will be one of claim scope and evidence: Can the patentee prove that FanDuel’s system for managing live betting markets practices the specific methods recited in the claims? This will likely focus on two factual questions: (1) Does FanDuel's system of closing betting markets constitute the claimed "lockout signal," and (2) does its use of third-party data from on-site scouts meet the specific claim requirement of "utilizing a person" to time that signal?
  • A second key question will be one of damages and willfulness: Given the extensive allegations of pre-suit contact, due diligence under an NDA, and prior litigation involving the same patent family, a central battleground will likely be whether FanDuel’s conduct was willful. The outcome could significantly impact the potential damages award if infringement is found.