Beteiro, LLC v. Draftkings Inc.

CourtCourt of Appeals for the Federal Circuit
DecidedJune 21, 2024
Docket22-2275
StatusPublished

This text of Beteiro, LLC v. Draftkings Inc. (Beteiro, LLC v. Draftkings Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beteiro, LLC v. Draftkings Inc., (Fed. Cir. 2024).

Opinion

Case: 22-2275 Document: 76 Page: 1 Filed: 06/21/2024

United States Court of Appeals for the Federal Circuit ______________________

BETEIRO, LLC, Plaintiff-Appellant

v.

DRAFTKINGS INC., POINTSBET USA, INC., BETMGM, LLC, HILLSIDE NEW JERSEY LLC, BETFAIR INTERACTIVE US LLC, TSG INTERACTIVE US SERVICES LTD. CORP., ODS TECHNOLOGIES LP, KINDRED GROUP PLC, TRANNEL INTERNATIONAL, LTD., UNIBET INTERNATIONAL, LTD., UNIBET INTERACTIVE, INC., Defendants-Appellees ______________________

2022-2275, 2022-2277, 2022-2278, 2022-2279, 2022-2281, 2022-2283 ______________________

Appeals from the United States District Court for the District of New Jersey in Nos. 1:21-cv-20148-CPO-SAK, 1:21-cv-20155-CPO-SAK, 1:21-cv-20156-CPO-SAK, 1:21- cv-20158-CPO-SAK, 1:22-cv-00577-CPO-SAK, 1:22-cv- 01536-CPO-SAK, Judge Christine P. O’Hearn. ______________________

Decided: June 21, 2024 ______________________

MICHAEL SCOTT FULLER, Garteiser Honea. PLLC, Ty- ler, TX, argued for plaintiff-appellant. Also represented by Case: 22-2275 Document: 76 Page: 2 Filed: 06/21/2024

RANDALL T. GARTEISER, CHRISTOPHER A. HONEA.

ELIOT DAMON WILLIAMS, Baker Botts LLP, Washing- ton, DC, argued for defendant-appellee DraftKings Inc. Also represented by JAMIE ROY LYNN; GEORGE HOPKINS GUY, III, Palo Alto, CA; ROBERT LAWRENCE MAIER, New York, NY; CLARKE STAVINOHA, Dallas, TX.

ELISABETH S. THEODORE, Arnold & Porter Kaye Scholer LLP, Washington, DC, argued for defendants-appellees BetMGM, LLC, BetFair Interactive US LLC, Hillside New Jersey LLC, Kindred Group PLC, ODS Technologies LP, PointsBet USA, Inc, Trannel International, Ltd., TSG In- teractive US Services Ltd. Corp., Unibet Interactive, Inc., Unibet International, Ltd. Defendant-appellee BetMGM, LLC also represented by PATRICK BRODIE HALL, EVAN M. ROTHSTEIN, Denver, CO.

MEGAN J. REDMOND, Erise IP, P.A., Overland Park, KS, for defendants-appellees BetFair Interactive US LLC, ODS Technologies LP, TSG Interactive US Services Ltd. Corp. Also represented by CAROLINE A. BADER, ERIC ALLAN BURESH.

ARTHUR ZORIO, Brownstein Hyatt Farber Schreck LLP, Reno, NV, for defendant-appellee Hillside New Jersey LLC.

MARK MICHAEL SUPKO, Crowell & Moring, LLP, Wash- ington, DC, for defendants-appellees Kindred Group plc, Trannel International, Ltd., Unibet International, Ltd., Unibet Interactive, Inc.

CHARLES KRAMER VERHOEVEN, Quinn Emanuel Ur- quhart & Sullivan, LLP, San Francisco, CA, for defendant- appellee PointsBet USA, Inc. Also represented by JARED WESTON NEWTON, Washington, DC. ______________________ Case: 22-2275 Document: 76 Page: 3 Filed: 06/21/2024

BETEIRO, LLC v. DRAFTKINGS INC. 3

Before DYK, PROST, and STARK, Circuit Judges. STARK, Circuit Judge. Beteiro, LLC (“Beteiro”) appeals from a judgment en- tered by the United States District Court for the District of New Jersey dismissing its multiple related patent infringe- ment cases for failure to state a claim based on the subject matter ineligibility of the patent claims. We affirm. I Beteiro owns U.S. Patent Nos. 9,965,920 (“the ’920 pa- tent”), 10,043,341 (“the ’341 patent”), 10,147,266 (“the ’266 patent”), and 10,255,755 (“the ’755 patent”) (collectively, the “Asserted Patents”). All of the Asserted Patents share a common specification and title: “Apparatus and Method for Facilitating Gaming Activity and/or Gambling Activ- ity.” The Asserted Patents disclose a purported invention which “facilitate[s] gaming activity and/or gambling activ- ity at a gaming venue remote from the user’s or individual’s physical location” such that the user can “participate in live gaming activity and/or gambling activity via a user com- munication device” even if the user is not in the same loca- tion as the gaming venue. ’920 patent at 3:9-14. 1 The ’920 patent explains that “many individuals enjoy gambling” but “may not always have access to particular gaming venues or gaming activities,” for reasons including that the individuals may be located in a jurisdiction in which gambling is not lawful. Id. at 1:44-47. As a solution, the patent describes a preferred embodiment in which “a user can access a . . . gaming facility computer 30 via the user communication device 20 and place a bet, wager, and/or otherwise engage in gaming activity and/or

1 For ease of reference, we limit our specification ci- tations to the ’920 patent. Case: 22-2275 Document: 76 Page: 4 Filed: 06/21/2024

gambling activity.” Id. at 79:41-45. The “gaming facility computer 30 can determine if the remote gaming activity and/or gambling activity is allowed by the state having ju- risdiction” over the individual by determining the location of that individual. Id. at 80:38-39. The patent describes ascertaining the user’s location through the use of a global positioning system (“GPS”) included in “user communica- tion device(s).” Id. at 8:38-41. One embodiment describes the GPS equipped on a mobile device such as a mobile phone: In another preferred embodiment, wherein the user communication device 20 is a wireless commu- nication device and/or a mobile communication de- vice (i.e. personal digital assistant, wireless videophone, wireless telephone, or palm-held de- vice, etc., which can be equipped with a global po- sitioning system (GPS) device 20J), the location of the user communication device 20 and, therefore, the location from which the gaming activity and/or gambling activity originates and/or from which it takes place can be determined by the user commu- nication device 20 automatically transmitting posi- tion data and/or information to the respective central processing computer 10 and/or gaming fa- cility computer 30 at the time of the user’s access- ing of the respective central processing computer 10 and/or gaming facility computer 30. Id. at 80:10-24. Notably, the above-quoted portion of the specification is the only description anywhere in the very lengthy specification of a GPS equipped on a mobile phone. Independent claim 2 of the ’755 patent, which the dis- trict court, the parties, and we agree is representative for purposes of evaluating the issue of patentable subject mat- ter, see J.A. 9-10, recites: A computer-implemented method, comprising: Case: 22-2275 Document: 76 Page: 5 Filed: 06/21/2024

BETEIRO, LLC v. DRAFTKINGS INC. 5

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