Cantor Fitzgerald affiliate files patent suit against DraftKings, FanDuel over Lutnick-linked inventions

Cantor Fitzgerald affiliate files patent suit against DraftKings, FanDuel over Lutnick-linked inventions

The copyrights are currently held by Interactive Games

An affiliate of Cantor Fitzgerald has filed lawsuits against sports-betting platforms DraftKings and FanDuel in the U.S. District Court for the District of Massachusetts and the U.S. District Court for the District of New Jersey, alleging infringement of patents developed by the now-defunct Cantor Gaming.

The complaints stated that two patents covering mobile gambling technologies were co-invented by U.S. Commerce Secretary Howard Lutnick, along with other Cantor Gaming employees, during his tenure as CEO of Cantor Fitzgerald.

According to Nevada business records, the patents are currently held by Interactive Games LLC, another Cantor affiliate.

Lutnick stepped down as CEO of Cantor Fitzgerald and chairman of Interactive Games after being confirmed as Commerce Secretary under U.S. President Donald Trump. At the time, the company said he had divested all business interests linked to Cantor.

A spokesperson for the Commerce Department stated, "Secretary Lutnick has fully complied with the terms of his ethics agreement, including all divestiture and recusal requirements, and will continue to do so."

As a rule, companies accused of patent infringement often seek review of the contested patents through the U.S. Patent and Trademark Office (USPTO). If the agency agrees to examine the patents and later invalidates them, defendants can move to have the court dismiss the claims.

Such a scenario could raise unusual questions if DraftKings and FanDuel request a review of patents co-invented by the official who oversees the patent office and formerly led the company that developed them.

Dennis Crouch, a law professor at the University of Missouri, noted that Lutnick was listed as an inventor on hundreds of patents tied to financial technology and online gaming.

He added, "Lutnick is the first Secretary of Commerce in U.S. history who is personally and financially tied into the patent system.”

Inventors do not always retain ownership of patents, as filings are frequently made on behalf of companies, employers, or research institutions.

Interactive Games alleged that DraftKings and FanDuel infringed five patents originally developed by Cantor Gaming related to mobile betting systems, and it is seeking unspecified damages.

Lutnick founded Cantor Gaming, a Nevada-based sportsbook and gambling-technology company, in 2006.

Earlier, Interactive Games pursued similar patent claims against DraftKings and FanDuel in cases dating back to 2016, where the patents’ validity was challenged before the USPTO.

Meanwhile, UK-based betting firm Betfair is also named as a defendant in the New Jersey court case.

Interactive Games was represented by Michael Joffre, Chandrika Vira, Daniel Block, William Milliken and Richard Crudo of Sterne Kessler Goldstein & Fox.