Engine Media files patent lawsuit against DraftKings

The esports company Engine Media Holdings has filed a patent infringement lawsuit against the US sports betting giant DraftKings.

Engine Media is a Toronto-based gaming company that provides sports and esports gaming experiences, along with media solutions focused on influencer marketing.

The lawsuit

The lawsuit was filed by Engine Media’s skill gaming-focused subsidiary Winview Inc. with the District Court in New Jersey.

Winview is being represented in this matter by Morgan Chu of Irell & Manella, LLP and Thomas R. Curtin of McElroy, Deutsch, Mulvaney & Carpenter, LLP.

Winview’s lawsuit alleges services offered by DraftKings overlap with two of its patents relating to the “Methodology for Equalizing Systemic Latencies in Television Reception in Connection with Games of Skill Played in Connection with Live Television Programming” and “Method of and System For Managing Client Resources and Assets for Activities On Computing Devices”.

The first patent relates to the technology used to improve latency so that live betting customers can see the same odds at the same time. Meanwhile, the second patent relates to the distribution of entertainment that is directly related to live events.

According to the lawsuit, “An individual in New Jersey using a satellite dish network may experience a three-second delay compared to an individual in California using a cable network.

“Recognizing that these latencies need to be accommodated in order to maintain user enjoyment and fairness for all participants, the inventors described and claimed technical solutions to these problems.”

The lawsuit claims that DraftKings is now using similar solutions to prevent this.

What does this mean for DraftKings?

DraftKings’ share price remained relatively stable dropping just 0.8% while Engine Media’s share price rose by 18%. Engine Media is also close to completing its Nasdaq listing.

Although there was no reason given behind the decision to target DraftKings, the company is seeking the recovery of damages and “other appropriate relief.”

Tom Rogers, executive chairman of Engine Media, said: “Winview is an important operating unit of Engine Media, providing cash games of skill as part of the viewing experience of both traditional sports and esports.

“In addition, Winview has a growing portfolio of 80 issued United States patents, many of which relate to mobile sports betting and online gaming technologies. We will continue assessing how we can protect our intellectual property.”