(AsiaGameHub) – A subsidiary of the “renowned global financial institution home to world-class professionals, delivering specialized industry expertise, cutting-edge products, and customized client solutions”, Cantor Fitzgerald, has launched fresh legal action against two of the most prominent brands in the US sports betting space.
According to Reuters, Interactive Games LLC is alleging that DraftKings and FanDuel engaged in unauthorized use of patented technology, having supposedly infringed on five patents first developed by the now-closed Cantor Gaming.
The Controversy
Filed in federal courts in New Jersey and Massachusetts, the lawsuits assert that the patents cover key elements of mobile wagering technology, a core function of contemporary online sportsbooks. A noteworthy detail of the case is that two of these patents were co-invented by Howard Lutnick during his tenure as chief executive officer of Cantor Fitzgerald.
Lutnick stepped down from his leadership posts at both Cantor and Interactive Games after he was confirmed as US Commerce Secretary under the Donald Trump administration. The company stated at the time that he had fully divested all business interests connected to Cantor.
“Secretary Lutnick has fully followed the terms of his ethics agreement, including all required divestment and recusal obligations, and will continue to do so,” a Commerce Department spokesperson stated.
Rare Occurrence
As such, the case could take an atypical turn given Lutnick’s current role as head of the Commerce Department, which is tasked with overseeing the United States Patent and Trademark Office, the agency that manages all patent review processes.
In the majority of patent infringement cases, defendants file requests for the agency to re-examine the validity of the patents being disputed.
If DraftKings or FanDuel elect to take this route, it could create a rare scenario where patents associated with a sitting cabinet official are reviewed by an agency that falls under his supervision.
Legal experts note that while this situation is uncommon, it is not necessarily inappropriate. Dennis Crouch, a law professor at the University of Missouri, observed that Lutnick is listed as an inventor on hundreds of patents across the financial technology and online gaming sectors.
Interactive Games is seeking monetary damages, though the specific amount has not been revealed. The company has filed similar claims in the past, having sued the same sportsbook operators over related technology ten years ago. The latest lawsuits also add Betfair as an additional defendant in the New Jersey filing.
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