DUBLIN, IRELAND: US facing sports betting Operators and software suppliers are now considering their cashout options as a recent US patent for cashout has been granted to Marketmaker Software Ltd, after an eleven year battle for recognition was resolved by the US Patent office.
Marketaker Software Ltd was behind the 2007 founded Oddsfutures exchange, that designed & launched many unique pricing & proprietary features into the online gambling market. The Oddsfutures exchange ceased trading in 2013 but the company principals continued with their patent application process with a view to potential future activity focused on a legal & regulated US online sports betting space. The US sports betting market has now changed significantly as licensing & regulation happens in many states.
Many European based sports betting Operators and software suppliers have been at the forefront of the changes in the US market, by bringing their regulated market experience to new partnerships to ensure that the nascent US regulated space has best of breed experience & product. In particular, software and product are key battlegrounds, as differences are identified around the needs & wants of the US sports bettor as well as the critical legal and regulatory requirements of both the individual states and federal oversight
European Operators & software providers are coming to realise that the US legal & regulatory environment has certain key differences. Of which, a principle concern is the different treatment of software, user experience, IP and patents. The US carries significant Federal protection for IP and Patents under US law. The cashout patent grant to Marketmaker Software Ltd, effective until 2029 is the most current high-profile example of how US federal law and patent protection differs from the European environment.
Regarded as a key revenue and retention driver for in play sports betting worldwide, cashout currently comprises approximately 65% of global in play sports betting liquidity. For the US regulated market, cashout numbers are already at 20% of gross revenue for some NJ based providers.
“It’s been a long road, and we’re glad we’ve hung there with our belief that the online sports betting market in the US would be regulated. It’s come too late for us to make a dent in the market in terms of the Exchange, but with Finnegan as a key partner we’re hugely keen to build a successful and sustainable software licensing business that supports the ambitions of the most important and innovative suppliers & operators in the US sports betting space.” said Marc Butterly, CEO of Marketmaker Software Ltd.
“We’ve always made sure to work with the best possible advisors and having counsel as accomplished as Erika Arner of Finnegan onboard, is a critical factor in our IP protection success. The work that Finnegan are doing builds on their previous experience at the PTAB, in the Supreme court with Bilski and in the federal courts with the Trading Technologies cases”
“What are our current plans? Well, we’ve kept a low profile, as there’s so much noise in the new regulated US space, and we’re aware of other 3rd parties who’ve attempted to claim the cashout space indirectly, but this patent grant has removed any confusion around where the cashout IP sits. Our plan is to work with a partner group of US facing Operators & software providers that plan to maximise the regulated market opportunity by licensing cashout from us. Working without IP cover will create a lot of risk for suppliers, not least embarrassment with their customers. We have kicked off early stage talks with a number of the most interesting companies in the space and hope to announce a marquee partner soon. We believe that any company that can announce that they are the first company to legally offer cashout IP to US players will have significant competitive advantage.”
Marketmaker’s cashout IP was filed with an effective date (priority date) of April/July 2007. Under US Federal Law, this ‘priority date of 2007’ means any ‘Cash Out’ related patents filed after 2007 asserted through ‘cease and desist’ letters are of little legal significance. However, verified use, copy, simulation or UX based execution of the ‘Cash Out’ Button for an existing sports bet, for the benefit of, in, or delivered to a USA based consumer is potentially an infringement of Marketmaker’s 2007 filed IP.
Not owning the ‘Cash Out’ IP, which is protected under US Federal Law, whilst providing a 3rd party ‘Cash Out’ services may put technology providers in breach of contract indemnity warranties with Casino Partners, b2b customers and Operators. Licencing rights to the ‘Cash Out’ IP will give operators a commercial edge in a marketplace keen to do early expansion cheaply and without litigation risk.
Marketmaker Software Ltd can supply an accompanying FAQ to cover technical questions arising from this News Release. A copy of the patent is available here, what is covered is on the RHS of the webpage
For further information, please contact:
Marc Butterly, Director, Marketmaker Software Ltd
[email protected]com or +353 87 8055 267
Erika Harmon Arner, Partner, Finnegan IP Washington
[email protected] +1 202 408 4000
For further information, please contact [email protected] or call +353 87 8055 267