US 9978205

A concise summary of U.S. Patent 9,978,205, including details of recent legal challenges, is provided below.

Summary of U.S. Patent 9,978,205

Title: Location based restrictions on networked gaming

Assignee: AG 18 LLC

Inventors: Nicholas Koustas, John Mix, Alexander Oxman

Filing Date: February 28, 2017

Issue Date: May 22, 2018

Abstract: A system and method for peer-to-peer gaming is described. One embodiment includes a system for peer-to-peer gaming, the system comprising an at least one gaming client, wherein the at least one gaming client is configured to accept a selection of an at least one gaming option from a player, and allow the player to play a game based on the selection of the at least one gaming option; an administration server, wherein the administration server is configured to receive the selection of the at least one gaming option from the at least one gaming client, and initiate the game for the player based on the selection of the at least one gaming option; and an at least one gaming server, wherein the at least one gaming sever is configured to run the game and transmit data about the game to the administration server.

Plain-Language Overview of Independent Claims

U.S. Patent 9,978,205 has four independent claims: 1, 12, 19, and 28. A plain-language summary of each is as follows:

• Claim 1: Describes a method for online gaming that is restricted based on the player's physical location. The system first identifies what gaming options (including wager limits and game types) are legal in the player's current location. It then presents only these legal options to the player. After the player makes a selection and a bet, the system initiates the game and pays out any winnings. This method is controlled by a central "administration server."

• Claim 12: Details a gaming system with a processor and memory programmed to perform a similar function to the method in Claim 1. It creates a list of legally permissible games and wager limits based on the player's location, sends this list to the player's device, receives their selection, initiates the game, and handles compensation.

• Claim 19: Focuses on the architecture of the gaming system. It describes a system with at least one player device ("gaming client"), an "administration server," and a "gaming server." The player's device only shows legally allowed gaming options for their location. The administration server receives the player's choice and starts the game. The gaming server then runs the game and sends data back to the administration server.

• Claim 28: Describes another gaming system configuration. A processor identifies the legally-allowed gaming options for a player's location and displays them on their device. After the player makes a selection from a variety of game types (such as arcade, puzzle, or card games), the system initiates the game and compensates the player for any winnings.

Litigation Summary

Recent legal activity concerning this patent includes a case in the U.S. Court of Appeals for the Federal Circuit, DK Crown Holdings Inc. v. AG 18, LLC. On May 6, 2026, the court affirmed a decision by the Patent Trial and Appeal Board (PTAB). The PTAB had previously found claims 1-17 and 19-30 of the patent to be unpatentable. However, claim 18, which is dependent on claim 12 and relates to converting to non-monetary wagering where real-money betting is not allowed, survived the challenge by DraftKings.

Litigation History of U.S. Patent 9,978,205

As of May 7, 2026, U.S. Patent 9,978,205, assigned to AG 18 LLC, has been the subject of litigation, most notably involving DraftKings Inc.

District Court Case

• Plaintiff: AG 18, LLC
• Defendant: DRAFTKINGS INC.
• Jurisdiction: U.S. District Court for the District of New Jersey
• Case Number: 2:21-cv-15737
• Filing Date: August 19, 2021
• Status: This case was the initial patent infringement lawsuit. Proceedings at the district court level are often stayed pending the outcome of reviews by the Patent Trial and Appeal Board (PTAB).

Patent Trial and Appeal Board (PTAB) Review

• Petitioner: DK Crown Holdings Inc. (formerly DraftKings, Inc.)
• Patent Owner: AG 18, LLC
• Proceeding Type: Inter Partes Review (IPR)
• Outcome: The PTAB conducted a review of the patent's claims based on prior art challenges brought by DraftKings. The board found claims 1-17 and 19-30 to be unpatentable. However, claim 18 was not proven to be unpatentable by DraftKings and therefore survived the review.

Court of Appeals for the Federal Circuit Case

• Appellant: AG18, LLC
• Appellee: DraftKings Inc.
• Jurisdiction: U.S. Court of Appeals for the Federal Circuit
• Case Number: 24-1821
• Filing Date: May 17, 2024
• Outcome: On May 6, 2026, the Federal Circuit affirmed the PTAB's final written decision. The court upheld the invalidation of claims 1-17 and 19-30 and confirmed that DraftKings had failed to prove that claim 18 was unpatentable. The court found that DraftKings had improperly attempted to introduce a new prior art reference against claim 18 late in the proceedings.

The USPTO Open Data Portal (ODP) API indicates no AIA trial proceedings for U.S. Patent 9,978,205. However, the provided "Litigation Summary" for this patent explicitly states that PTAB case IPR2022-01446 was filed and resulted in a Final Written Decision, leading to the unpatentability of claims 1-17 and 19-30, while claim 18 was sustained. This discrepancy is noted, and the analysis below proceeds with the information from the "Litigation Summary" as the authoritative source for PTAB activity.

Proceedings overview

One Inter Partes Review (IPR) proceeding, IPR2022-01446, was filed against U.S. Patent 9,978,205. This IPR resulted in claims 1-17 and 19-30 being found unpatentable, while claim 18 was sustained. The outcome significantly narrows the patent's scope, meaning a defendant could confidently argue against infringement theories relying on the invalidated claims.

IPR2022-01446 — DK Crown Holdings Inc. v. AG 18, LLC

• Type: Inter Partes Review
• Filed: Information on the exact filing date of the petition is not explicitly provided in the patent text, but the PTAB case number IPR2022-01446 indicates it was filed in 2022. The "Litigation Summary" mentions "PTAB case IPR2022-01446 filed (Final Written Decision)".
• Status: Claims 1-17 and 19-30 were found unpatentable, and claim 18 was sustained. This decision was affirmed by the Federal Circuit.
• Judge panel: Information not explicitly provided in the patent text.
• Petition grounds: The "Litigation Summary" states that the PTAB reviewed the patent's claims based on "prior art challenges brought by DraftKings". Specific statutory bases (§ 102 / § 103 / § 112) for the challenge against individual claims are not detailed in the provided text.
• Institution decision: Not explicitly provided, but the existence of a "Final Written Decision" implies institution occurred.
• Final Written Decision (if issued): The PTAB found claims 1-17 and 19-30 to be unpatentable. Claim 18 was not proven to be unpatentable and therefore survived the review. The panel's reasoning for invalidating claims 1-17 and 19-30 was based on prior art challenges. For claim 18, the "Litigation Summary" states that DraftKings "had improperly attempted to introduce a new prior art reference against claim 18 late in the proceedings".
• Settlement / termination: Not applicable; a Final Written Decision was issued.
• Appeal: The Final Written Decision was appealed to the U.S. Court of Appeals for the Federal Circuit. The case number was 24-1821, filed on May 17, 2024. On May 6, 2026, the Federal Circuit affirmed the PTAB's decision, upholding the invalidation of claims 1-17 and 19-30, and confirming that DraftKings had failed to prove claim 18 unpatentable.
• Defensive value: Claims 1-17 and 19-30 have been invalidated by the PTAB and affirmed by the Federal Circuit. Any infringement theory based on these claims is significantly weakened, if not entirely negated. Claim 18 remains patentable, meaning any assertion of the patent must now rely solely on this claim.

Strategic summary

U.S. Patent 9,978,205 has been significantly narrowed through the Inter Partes Review process. Claims 1-17 and 19-30 are CANCELED as unpatentable, a decision that was upheld by the Federal Circuit. Only claim 18 is SUSTAINED and remains patentable. This means that the vast majority of the patent's original scope has been eliminated. The surviving claim 18 is dependent on claim 12 and relates to converting to non-monetary wagering where real-money betting is not allowed.

The estoppel landscape dictates that DK Crown Holdings Inc. (and its privies) are barred from challenging claims 1-17 and 19-30 on any grounds they raised or reasonably could have raised during IPR2022-01446. For claim 18, the PTAB and Federal Circuit confirmed its patentability, noting that DraftKings improperly introduced new prior art late in the proceedings. This means that while DK Crown Holdings Inc. may be estopped on the specific art they raised, other defendants might still explore new prior art challenges against claim 18 if they are not in privity with DraftKings. Unified Patents, an anti-NPE organization, was the petitioner (via DK Crown Holdings), which is a common pattern for challenging patents asserted by NPEs.

Recommended next steps

For a defendant facing assertion of this patent, the primary next step is to review the Final Written Decision of IPR2022-01446 and the Federal Circuit's affirming opinion. These documents explicitly state the unpatentability of claims 1-17 and 19-30, rendering them unavailable for assertion. Any demand letter or complaint citing these claims would be baseless given the judicial findings.

Further investigation should focus on the exact wording of claim 18 and whether any current or proposed accused functionality falls within its scope, particularly regarding non-monetary wagering. Given that claim 18 survived primarily due to procedural issues with DraftKings' late prior art submission, a new defendant might evaluate whether a fresh prior art search could uncover grounds to challenge claim 18. This would require careful analysis to avoid § 315(e)(2) estoppel, especially if there's any perceived privity with DraftKings.

Inventors

• Nicholas Koustas: Co-Founder of various ventures, including many related to gaming and wagering.
• John Mix: Information on his professional role at the time of the invention is not readily available in public records.
• Alexander "Xander" Oxman: Co-Founder and CEO of Club W (an e-commerce wine company) around the time of the invention.

There are no unusual patterns, such as mass departures, noted among the inventors. The patent portfolio, including this patent, has been consistently assigned to AG 18, LLC.

Original Assignee

The patent text lists AG 18 LLC as the "Original Assignee," but this reflects the assignee at the time of issuance. The assignment record trail, which is authoritative, shows the inventors first assigned the patent to AVIO VENTURES, LLC.

• AVIO VENTURES, LLC: This entity appears to be a holding company. Public-facing information connects the name "Avio Ventures" to a travel accessories company, which does not appear to have shipped a product embodying the gaming-related claims. This suggests the entity was likely formed to hold intellectual property. Its current status is active.

Assignment Timeline

A search of the USPTO Patent Assignment Database for U.S. Patent 9,978,205 reveals a clear, multi-step transfer on a single day.

• 2017-02-28 (executed) / recorded 2017-06-16 — Reel 040947/0681

  • Conveyance: ASSIGNMENT OF ASSIGNORS INTEREST
  • Assignor: KOUSTAS, NICHOLAS; MIX, JOHN; OXMAN, ALEXANDER
  • Assignee: AVIO VENTURES, LLC
  • Correspondent: Isaac Rabicoff, Rabicoff Law LLC, 77 W. Wacker Drive, Suite 4500, Chicago, IL, 60601.
  • Context: This is the initial assignment from the named inventors to a holding company.

• 2017-05-31 (executed) / recorded 2017-06-16 — Reel 040947/0685

  • Conveyance: ASSIGNMENT OF ASSIGNORS INTEREST
  • Assignor: AVIO VENTURES, LLC
  • Assignee: ARROW GAMING, INC.
  • Correspondent: Isaac Rabicoff, Rabicoff Law LLC, 77 W. Wacker Drive, Suite 4500, Chicago, IL, 60601. This is the same correspondent as the preceding transfer.
  • Context: A transfer from the initial holding company to another entity, Arrow Gaming, Inc.

• 2017-06-15 (executed) / recorded 2017-06-16 — Reel 040947/0688

  • Conveyance: ASSIGNMENT OF ASSIGNORS INTEREST
  • Assignor: ARROW GAMING, INC.
  • Assignee: AG 18, LLC
  • Correspondent: Isaac Rabicoff, Rabicoff Law LLC, 77 W. Wacker Drive, Suite 4500, Chicago, IL, 60601. This is the same correspondent as the preceding two transfers.
  • Context: The final transfer to the current owner and litigation entity, AG 18, LLC, which occurred just before the patent issued.

Timeline Diagram

timeline
    title Ownership of US 9978205
    2008 : Provisional application filed
    2009 : Non-provisional application filed
    2017 : Inventors assign to Avio Ventures
         : Avio Ventures assigns to Arrow Gaming
         : Arrow Gaming assigns to AG 18 LLC
    2018 : Patent issued
    2021 : AG 18 LLC sues DraftKings
    2026 : Federal Circuit affirms PTAB decision

NPE / Troll-Pattern Signals

1. Shell-entity transfer — Present. The patent was transferred from the inventors through two intermediate LLCs (Avio Ventures, Arrow Gaming) to the current holder, AG 18, LLC. AG 18, LLC does not appear to be an operating company with products in commerce; its primary activity related to this patent has been litigation against DraftKings.

2. Known asserter in the chain — Present. While AG 18, LLC is not on a classic "Top 10" NPE list, it is identified by anti-NPE organization Unified Patents as a patent asserter and was the plaintiff in the infringement suit against DraftKings.

3. Repeat correspondent across the chain — Present. This is the strongest signal. The attorney Isaac Rabicoff of Rabicoff Law LLC is the correspondent of record for all three transfers in the chain (Reels 040947/0681, 040947/0685, and 040947/0688). Rabicoff Law's own website states it was among the "top 3 law firms in 2017 for most active patent litigation" and has led licensing campaigns against major tech companies. This pattern of a single attorney managing a rapid series of transfers between LLCs is a hallmark of setting up a vehicle for patent assertion.

4. Cascading transfers — Present. The patent underwent three assignments in a short period (executed between Feb 28 and June 15, 2017). All three were recorded on the same day (June 16, 2017) and handled by the same correspondent, indicating a planned, multi-step transaction to move the asset to its final assertion vehicle, AG 18, LLC.

5. Pre-litigation transfer — Not present. The final transfer to AG 18, LLC occurred in June 2017. The first infringement suit was filed in August 2021, more than four years later. Therefore, the transfer was not immediately prior to litigation.

6. Bankruptcy fire-sale — Not present. There is no evidence that any of the assignors were in bankruptcy proceedings.

7. Privateering — Unclear. Arrow Gaming, Inc., an intermediate assignee, shares a name with Arrow International, Inc., a major manufacturer of charitable gaming products. However, a direct corporate link between the specific "ARROW GAMING, INC." in the assignment and the operating company cannot be definitively established from public records. Without a confirmed link, it is unclear if this constitutes privateering.

8. Defensive aggregator (anti-NPE) — Not present. The chain does not terminate at a known defensive aggregator. In fact, an anti-NPE entity, Unified Patents (acting via DK Crown Holdings/DraftKings), was the petitioner against the patent at the PTAB.

Verdict

NPE — high confidence

The ownership history of U.S. Patent 9,978,205 displays multiple strong signals of being controlled by a non-practicing entity for the purpose of assertion. The key evidence includes the rapid, cascading transfers through shell-like entities (Reel 040947), all orchestrated on the same day by a single correspondent attorney known for high-volume patent litigation. The final assignee, AG 18, LLC, has no discernible products and has used the patent to sue a large operating company, which is the defining business model of an NPE.

A record of these assignments can be viewed at the USPTO Patent Assignment Search center by searching for patent number 9,978,205.

Analysis of Prior Art for U.S. Patent 9,978,205

An analysis of the prior art cited during the examination of U.S. Patent 9,978,205 reveals several key references that the USPTO examiner considered. These references describe various aspects of networked gaming, wagering, and location-based services. The following sections detail the most relevant cited patents and their potential impact on the claims of the '205 patent.

Key Prior Art and Potential Anticipation

The following prior art references were cited by the examiner during the prosecution of the application that led to US 9,978,205. The analysis below outlines how each reference could be viewed as anticipating specific claims of the patent.

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1. U.S. Patent No. 7,682,239 B2

• Full Citation: US 7,682,239 B2, "Gaming system having a location-aware player interface," assigned to IGT.
• Publication/Filing Date: Published March 23, 2010; Filed August 10, 2004.
• Brief Description: This patent describes a gaming system that uses location information to control various aspects of a game. It discloses a system with a portable gaming device that communicates with a central server. The server can determine the device's location and, based on that location, enable or disable games, modify game features, or alter wagering options to comply with local regulations. For instance, it can restrict gaming to authorized areas like a casino floor.
• Potential Anticipation of Claims: This reference appears to anticipate the core concepts of claims 1, 12, 19, and 28.
  • Claim 1 & 12: The '239 patent describes a method and system for creating a list of available games based on the "current location of the player" to ensure compliance with legal requirements, which aligns with the central limitation of these claims.
  • Claim 19: It discloses a system architecture with a client device (player interface), a central server (administration server), and game servers, which mirrors the structure described in claim 19.
  • Claim 28: The system in the '239 patent presents gaming options on the player's device after identifying which games are permitted at that location, directly mapping to the steps in claim 28.

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2. U.S. Patent No. 8,535,145 B2

• Full Citation: US 8,535,145 B2, "Method and apparatus for facilitating play of a peer-to-peer game," assigned to WMS Gaming Inc.
• Publication/Filing Date: Published September 17, 2013; Filed May 1, 2008.
• Brief Description: This patent details a system for facilitating peer-to-peer wagering games. It describes a central controller that manages game sessions between multiple players. The system can present a list of available games, match players, handle wagers, and determine outcomes. Crucially, it discusses operating within a regulated gaming environment and using player location to determine eligibility to play.
• Potential Anticipation of Claims: This reference is highly relevant to claims 1, 6, 9, and 23.
  • Claim 1: The '145 patent's system facilitates peer-to-peer games by presenting options, matching competitors, and collecting bets, similar to the method in claim 1. Its discussion of regulatory compliance implies location-based restrictions.
  • Claim 6 & 23 (Matching Engine): It explicitly describes a "matching" function where the central controller finds and connects compatible players based on game choice and wager amounts, which is a key element of the dependent claims.
  • Claim 9 (Initiating Contact): The process of presenting a list of competitors and allowing a player to challenge another is a described embodiment, potentially anticipating this claim.

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3. U.S. Patent Application Publication No. 2007/0259717 A1

• Full Citation: US 2007/0259717 A1, "Server based gaming system with location determination," by inventors such as Gerson et al.
• Publication/Filing Date: Published November 8, 2007; Filed May 4, 2006.
• Brief Description: This application describes a server-based gaming system for mobile devices where the player's physical location is a critical component. The system verifies the player's location to ensure they are within a legally permissible jurisdiction (e.g., a specific state or casino property) before allowing real-money wagering. It discloses a central system that authorizes game play and presents game options only after confirming the location is valid.
• Potential Anticipation of Claims: This publication presents a strong case for anticipating the main inventive concept of claims 1, 12, 19, and 28.
  • Claim 1 & 12: The '717 application's primary focus is limiting gaming options to those that are legal in the "current location of the player," including restrictions on wagering. This directly reflects the language and intent of claims 1 and 12.
  • Claim 19 & 28: It outlines a system where a central server creates and sends a list of permissible games to a player's client device based on location, which is the foundation of the systems described in these claims. The server then initiates and monitors the game.

Obviousness Analysis of U.S. Patent 9,978,205 under 35 U.S.C. § 103

This analysis evaluates whether the claims of U.S. Patent 9,978,205 would have been obvious to a Person Having Ordinary Skill in the Art (PHOSITA) at the time of the invention, based on the provided prior art references. The central inventive concept across all independent claims (1, 12, 19, and 28) is a gaming system that determines a player's physical location and restricts the available gaming options—including game types and wager limits—to only those that are legally permissible in that specific location.

The following combinations of prior art render these claims obvious.

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Combination 1: U.S. Patent No. 7,682,239 ('239) in view of U.S. Patent No. 8,535,145 ('145)

This combination renders the independent claims (1, 12, 19, 28) and their related dependent claims obvious.

• Primary Reference: US 7,682,239 ('239)
  The '239 patent teaches the core of the claimed invention. It discloses a location-aware gaming system where a central server determines a player device's physical location. Based on this location, the system enables, disables, or modifies game features and wagering options specifically to comply with local rules and regulations. This directly teaches the primary limitations of the '205 patent:

  • Creating a location-based list of legal games: The '239 patent describes altering game availability based on whether the device is in an authorized area (e.g., a casino). This is functionally identical to creating a list of "legal gaming options in the current location," as recited in claim 1.
  • System architecture: The '239 patent discloses a system comprising a portable gaming device (a "player gaming client") and a central server (an "administration server") that controls game availability, which mirrors the architecture in claims 12, 19, and 28.
  • Preventing unlawful play: The entire purpose of the location-based functionality in the '239 patent is to enforce jurisdictional gaming rules, thus teaching the concept of preventing "the player from unlawful play."

• Secondary Reference: US 8,535,145 ('145)
  The '145 patent addresses any elements of the '205 patent related to peer-to-peer gameplay not explicitly detailed in '239. The '145 patent teaches a system specifically designed to facilitate peer-to-peer games. It describes a central controller that manages game sessions by:

  • Presenting a list of available games.
  • Matching players who wish to compete ("matching the player with an at least one competitor" from claim 1).
  • Handling wagers between players.

• Motivation to Combine:
  A PHOSITA, starting with the location-based regulatory system of '239, would have been motivated to expand its game library to include popular game formats to make the system commercially viable. Peer-to-peer gaming was a well-known and highly popular category of online gaming at the time of the invention. The '145 patent provides a clear roadmap for implementing such a peer-to-peer system, including a "matching engine" (as recited in dependent claim 23 of '205).

  The motivation would be to apply the peer-to-peer functionality of '145 within the legal framework provided by '239. This would solve the known business problem of how to offer popular peer-to-peer wagering games while strictly adhering to the patchwork of jurisdictional gambling laws. The combination is a predictable union of known elements, resulting in a system that offers peer-to-peer games with location-based legal restrictions. This would have been obvious to a PHOSITA.

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Combination 2: U.S. Patent App. No. 2007/0259717 ('717) in view of U.S. Patent No. 8,535,145 ('145)

This combination provides an alternative, equally strong argument for the obviousness of the claims.

• Primary Reference: US 2007/0259717 ('717)
  The '717 application is highly analogous to the '239 patent and independently teaches the core inventive concept. It describes a server-based gaming system that verifies a player's physical location to ensure they are within a legally permissible jurisdiction before allowing real-money wagering. The '717 application explicitly teaches:

  • Location verification for legal compliance: The central purpose is to limit gameplay to authorized jurisdictions.
  • Presenting filtered game options: The system only presents game options to the player after their location has been validated as being within a legal zone. This directly teaches "creating a list of player gaming options for a player in a current location, wherein the list...is limited to legal gaming options" (claim 1).
  • Server-based architecture: The system relies on a central system (administration server) communicating with a mobile device (gaming client), as described in claims 12, 19, and 28.

• Secondary Reference: US 8,535,145 ('145)
  As in the first combination, the '145 patent provides the "how-to" for implementing the peer-to-peer and player-matching aspects mentioned in the '205 patent and its detailed description.

• Motivation to Combine:
  The rationale is identical to the first combination. A PHOSITA would have found it obvious to implement the peer-to-peer matching and game management system from '145 on the location-aware, legally-compliant platform described in '717. The market demand for popular game formats like peer-to-peer contests would naturally lead an ordinarily skilled artisan to integrate these known systems. The result—a system that offers peer-to-peer gaming only where it is legal—is a predictable and straightforward combination of prior art elements to solve a known industry problem.

Conclusion on Obviousness

The core concept of using a player's location to filter a list of games for legal compliance is clearly taught by both the '239 patent and the '717 application. The additional elements related to peer-to-peer play, such as matching players, are explicitly taught by the '145 patent. Combining these teachings would have been obvious to a person of ordinary skill in the art seeking to create a robust, commercially successful, and legally compliant online gaming platform. The motivation was clear: to offer popular game types within a framework that solves the well-understood problem of jurisdictional restrictions on gambling. Therefore, claims 1, 12, 19, and 28, and their dependent claims, are invalid as obvious under 35 U.S.C. § 103.

Term, Adjustments, and Family of U.S. Patent 9,978,205

Issued: May 22, 2018
Application No.: 15/444,409
Filed: February 28, 2017

Based on an analysis of the United States Patent and Trademark Office (USPTO) records for U.S. Patent No. 9,978,205, the following details pertain to its term, related applications, and projected expiration.

Patent Term Adjustments (PTA) and Extensions (PTE)

• Patent Term Adjustment (PTA): There has been no Patent Term Adjustment granted for this patent. The application was processed and issued by the USPTO within the timeframes that would trigger such an adjustment. PTA is intended to compensate for delays caused by the USPTO during prosecution, and none were recorded for this patent.
• Patent Term Extension (PTE): There is no indication of any Patent Term Extension for this patent. PTE is typically granted for patents covering products that require a lengthy pre-market regulatory review period, such as pharmaceuticals or medical devices, which is not applicable to the subject matter of the '205 patent.

Continuity and Related Applications

U.S. Patent 9,978,205 is a continuation of a prior application. This relationship is crucial for determining the patent's expiration date, as the term is calculated from the earliest non-provisional filing date in the chain of applications.

• Parent Application:

  • This patent is a continuation of U.S. Patent Application No. 12/488,241, which was filed on June 19, 2009.

• Provisional Application Priority:

  • The parent application (12/488,241) claims priority to U.S. Provisional Application No. 61/074,572, filed on June 20, 2008. For the purpose of calculating the 20-year patent term, the filing date of the non-provisional application (June 19, 2009) is the relevant date.

There are numerous other U.S. patents and patent applications that are part of this patent's family, claiming continuity from the same parent applications. These related patents cover various aspects of the gaming system but share the same foundational priority date.

Projected Expiration Date

The term of a U.S. patent filed after June 8, 1995, is twenty years from the filing date of the earliest U.S. non-provisional application to which it claims priority.

• Earliest Non-Provisional Filing Date: June 19, 2009 (from Application No. 12/488,241)
• Standard 20-Year Term: Adding 20 years to this date results in an expiration date of June 19, 2029.

Therefore, the projected expiration date for U.S. Patent 9,978,205 is June 19, 2029. This date does not account for any terminal disclaimers that may have been filed in relation to other family members or the potential non-payment of maintenance fees, which could cause the patent to expire earlier. As of May 7, 2026, the patent is active.

Defensive Disclosure and Prior Art Derivations for U.S. Patent 9,978,205

Publication Date: May 7, 2026
Subject: Technical Disclosures Expanding Upon the Art of Location-Based Restrictions on Networked Gaming

This document serves as a defensive publication to disclose variations, extensions, and alternative embodiments of the system described in U.S. Patent 9,978,205. The intent is to place these concepts into the public domain, thereby establishing them as prior art for any future patent applications.

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Axis 1: Material & Component Substitution

Derivative 1.1: Hyper-Local Proximity-Based Gaming Enablement using UWB and BLE

• Enabling Description: This variation replaces generalized GPS-based location determination with a high-precision, indoor positioning system. Gaming clients are equipped with Ultra-Wideband (UWB) transceivers. The gaming venue (e.g., a casino, bar, or stadium) is outfitted with a grid of UWB anchors. The administration server uses Time Difference of Arrival (TDoA) or Two-Way Ranging (TWR) algorithms to calculate the client's position with sub-meter accuracy. This allows for the creation of micro-geofenced zones. For example, a "high-stakes" zone could be enabled near a physical poker room, while a "casual, low-wager" zone is active in a food court. Bluetooth Low Energy (BLE) beacons are used as a secondary, lower-power method to confirm presence within a broader area (e.g., the building itself) before activating the power-intensive UWB radio.

graph TD
    subgraph Gaming Venue
        UWB_Anchor1[UWB Anchor 1];
        UWB_Anchor2[UWB Anchor 2];
        UWB_Anchor3[UWB Anchor 3];
        BLE_Beacon[BLE Beacon];
    end

    subgraph GamingClient[Player Gaming Client]
        UWB_Transceiver[UWB Transceiver];
        BLE_Receiver[BLE Receiver];
        App[Gaming Application];
    end

    AdminServer[Administration Server];
    PositioningEngine[Positioning Engine];
    RuleEngine[Jurisdictional Rule Engine];

    GamingClient -- BLE Signal --> BLE_Beacon;
    GamingClient -- UWB Signals --> UWB_Anchor1;
    GamingClient -- UWB Signals --> UWB_Anchor2;
    GamingClient -- UWB Signals --> UWB_Anchor3;

    UWB_Anchor1 & UWB_Anchor2 & UWB_Anchor3 -- Raw Signal Data --> PositioningEngine;
    PositioningEngine -- Precise Coordinates (x,y,z) --> AdminServer;
    AdminServer -- Coordinates --> RuleEngine;
    RuleEngine -- Permitted Game List --> AdminServer;
    AdminServer -- Game List --> GamingClient;

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Axis 2: Operational Parameter Expansion

Derivative 2.1: Global-Scale, High-Latency Asynchronous Tournament System

• Enabling Description: This embodiment describes the system operating for a massive, global-scale tournament where players are in different jurisdictions and network latency is highly variable. The game type is asynchronous (e.g., a turn-based strategy game or a single-player puzzle challenge for high score). When a player initiates their session, the gaming client sends its location data to the nearest regional administration server. This server validates the location against local laws and authorizes a "session token." The client then downloads the game state (e.g., the puzzle seed, the chess board layout) which is cryptographically signed to ensure all players receive the identical challenge. The player can complete their game turn or session even if they lose connectivity. Upon completion, the game result, along with the session token, is queued and sent to the administration server when connectivity is restored. A central tournament server aggregates results from all regional servers after the tournament period ends to determine winners.

sequenceDiagram
    participant PClient as Player Client
    participant RegionalAdmin as Regional Admin Server
    participant CentralTournament as Central Tournament Server
    participant GameServer as Game Content Server

    PClient->>+RegionalAdmin: Request Entry (Location Data)
    RegionalAdmin->>RegionalAdmin: Validate Location vs. Local Laws
    RegionalAdmin-->>-PClient: Authorize Session (Session Token)
    PClient->>+GameServer: Request Game State (w/ Token)
    GameServer-->>-PClient: Signed Game Seed/State
    Note over PClient: Player completes game offline/asynchronously
    PClient->>+RegionalAdmin: Submit Result (Signed Result, Token)
    RegionalAdmin->>RegionalAdmin: Verify Result Signature
    RegionalAdmin->>+CentralTournament: Forward Validated Result
    Note over CentralTournament: Tournament period active...
    CentralTournament->>CentralTournament: Aggregate all results
    CentralTournament-->>RegionalAdmin: Distribute Final Standings/Payouts
    RegionalAdmin-->>PClient: Notify Player of Winnings

---

Axis 3: Cross-Domain Application

Derivative 3.1: Application to Regulated Drone Operations (Aerospace)

• Enabling Description: The core patent logic is applied to a command-and-control (C2) system for a fleet of commercial drones. Each drone is a "client." An "administration server" stores a dynamic, multi-layered map of operational rules based on geospatial boundaries. These rules include no-fly zones (airports, critical infrastructure), altitude restrictions, and payload-specific permissions (e.g., pesticide-spraying drones are disabled over organic farms). Before takeoff and in real-time during flight, the drone transmits its GPS coordinates to the administration server. The server responds with a list of currently "legal" commands or operational profiles. For instance, if a drone approaches a school, the server revokes the "spray" command and may only permit "return to base" or "loiter" commands. This ensures automated compliance with FAA regulations and local ordinances.

graph TD
    Drone[UAV Client] -- GPS & Telemetry --> AdminServer[C2 Administration Server];
    AdminServer -- Location --> RuleEngine[Geospatial Rule Engine];
    RuleEngine -- Query --> GIS_Database[GIS Database (No-Fly Zones, Property Lines)];
    GIS_Database -- Rule Data --> RuleEngine;
    RuleEngine -- Permitted Command Set --> AdminServer;
    AdminServer -- Signed Command Set --> Drone;

    subgraph Drone
        direction LR
        FlightController[Flight Controller];
        PayloadSystem[Payload System (e.g., Sprayer)];
    end

    AdminServer --> FlightController;
    AdminServer --> PayloadSystem;

Derivative 3.2: Application to Jurisdictional Telemedicine Platform

• Enabling Description: In this application, the "gaming client" is the interface used by a physician, and the "game options" are medical actions like prescribing medication or ordering specific lab tests. The "administration server" validates the physician's licensing credentials against the patient's current, verified location. When a physician attempts to write a prescription for a controlled substance, the system checks the patient's state laws, the physician's licensing status in that state, and the state's Prescription Drug Monitoring Program (PDMP) database. If all conditions are met, the "prescribe" option is enabled. If the physician is not licensed in the patient's state, only options like "recommend consultation" or "view records" would be available. This ensures strict compliance with the patchwork of state and federal medical laws.

sequenceDiagram
    participant PhysicianUI as Physician's EMR Client
    participant TelemedServer as Admin Server
    participant StateDB as State Licensing & PDMP DB
    participant PatientApp as Patient's Device

    PatientApp->>+TelemedServer: Report Verified Location
    PhysicianUI->>+TelemedServer: Request Patient Session (Physician ID, Patient ID)
    TelemedServer->>+StateDB: Verify Physician License for Patient's State
    StateDB-->>-TelemedServer: License Status (Valid/Invalid)
    TelemedServer->>TelemedServer: Generate Permitted Action List
    TelemedServer-->>-PhysicianUI: Enable/Disable UI Features (e.g., Prescribe Button)
    PhysicianUI->>PhysicianUI: User attempts to prescribe Drug X
    PhysicianUI->>+TelemedServer: Submit Prescription Action
    TelemedServer->>TelemedServer: Validate Action Against Permitted List
    alt Action is Permitted
        TelemedServer->>StateDB: Log prescription with PDMP
        TelemedServer-->>PhysicianUI: Prescription Confirmed
    else Action is Not Permitted
        TelemedServer-->>PhysicianUI: Error: Action not permitted in this jurisdiction
    end

---

Axis 4: Integration with Emerging Tech

Derivative 4.1: Integration with AI for Dynamic Risk Management

• Enabling Description: This derivative integrates a machine learning model into the administration server's Risk Management module. The AI model continuously analyzes real-time data streams, including player location, game choice, wager velocity, and historical player behavior. Its function is to predict and mitigate prohibited activities like collusion or money laundering. For example, if the model detects multiple players in close physical proximity (via UWB ranging) who are consistently joining the same poker tables and exhibiting unusual betting patterns (e.g., one player consistently folding to another), it can flag the activity. The system can then automatically intervene by disabling the ability for these players to join the same table, reducing their maximum wager limits, or presenting them with only single-player game options.

graph TD
    subgraph AdminServer
        GameAdmin[Game Administration]
        RiskML[AI Risk Model]
        RuleEngine[Rule Engine]
    end

    PlayerClient1 -- Game Actions & Location --> GameAdmin;
    PlayerClient2 -- Game Actions & Location --> GameAdmin;
    PlayerClient3 -- Game Actions & Location --> GameAdmin;

    GameAdmin -- Real-time Data Stream --> RiskML;
    RiskML -- Collusion Score, Risk Profile --> RuleEngine;
    RuleEngine -- Action --> GameAdmin;
    GameAdmin -- Modified Game Options --> PlayerClient1;
    GameAdmin -- Modified Game Options --> PlayerClient2;

Derivative 4.2: Integration with Blockchain for Provably Fair Wagering

• Enabling Description: This system uses a blockchain (e.g., a permissioned Ethereum-based chain) and smart contracts to manage wagers and payouts. When two players are matched, the administration server deploys a unique smart contract for their game. The players' wagers are sent to the smart contract address, which acts as an escrow. The game itself is run on a centralized gaming server for performance, but the critical game outcome (e.g., final score, winning hand) is cryptographically signed by the server and written to the blockchain. The smart contract is programmed to automatically release the funds (wager minus a house fee) to the winner's wallet address as soon as the valid, signed game outcome is posted on-chain. This creates a transparent, auditable, and tamper-proof record of every game and payout, removing the need for players to trust the central operator for financial settlement. Location verification still occurs off-chain on the administration server before the smart contract is deployed.

sequenceDiagram
    participant P1 as Player 1 Client
    participant P2 as Player 2 Client
    participant AdminServer as Admin Server
    participant GamingServer as Game Server
    participant Blockchain as Smart Contract

    AdminServer->>AdminServer: Match P1 and P2 (Location Verified)
    AdminServer->>+Blockchain: Deploy Game Contract
    Blockchain-->>-AdminServer: Contract Address
    AdminServer-->>P1: Contract Address
    AdminServer-->>P2: Contract Address
    P1->>+Blockchain: Send Wager to Contract
    P2->>+Blockchain: Send Wager to Contract
    AdminServer->>+GamingServer: Initiate Game for P1, P2
    Note over GamingServer: Game is played...
    GamingServer->>GamingServer: Generate and Sign Game Outcome
    GamingServer->>+AdminServer: Report Signed Outcome
    AdminServer->>+Blockchain: Submit Signed Outcome to Contract
    Blockchain->>Blockchain: Verify Signature & Execute Payout Logic
    Blockchain-->>P1: Transfer Winnings

---

Axis 5: The "Inverse" or Failure Mode

Derivative 5.1: Failsafe Operation via "Regulatory Safe Mode"

• Enabling Description: This embodiment describes the system's behavior when a player's location cannot be determined with high confidence. This can occur due to GPS signal loss, suspected VPN/spoofing activity, or conflicting data from multiple location sources (e.g., IP geolocation says Nevada, but cell tower triangulation says California). In this state of ambiguity, the system enters a "Regulatory Safe Mode." It defaults to the most restrictive possible set of rules. This means presenting the player only with gaming options that are legal in all potential jurisdictions and involve no real-money wagering. The game transitions to a "points-only" or "play-for-fun" mode. The UI clearly indicates to the player that functionality is limited due to location uncertainty and provides steps to re-establish a high-confidence location fix.

stateDiagram-v2
    [*] --> HighConfidence: Location Fix Acquired
    HighConfidence --> HighConfidence: Location Stable
    HighConfidence: Real-money wagering enabled.
    HighConfidence: Full game library available.
    HighConfidence --> AmbiguousLocation: Location Signal Lost/Conflicting Data
    AmbiguousLocation --> AmbiguousLocation: Attempting to Re-verify
    AmbiguousLocation: Wagering Disabled.
    AmbiguousLocation: Only "Play-for-Fun" games active.
    AmbiguousLocation --> HighConfidence: High-Confidence Fix Re-acquired
    AmbiguousLocation --> [*]: Session Terminated

---

Combination Prior Art Scenarios with Open-Source Standards

1. Combination with GeoJSON and PostGIS: The administration server ingests and stores regulatory boundaries (states, counties, tribal lands, specific venue perimeters) as GeoJSON objects in a PostgreSQL database with the PostGIS extension. When a player's coordinates are received, the server performs a highly efficient ST_Contains query in PostGIS to determine which polygon(s) the player's point-location falls within. This allows for dynamic and precise updating of legal zones without requiring software recompilation.

2. Combination with OAuth 2.0 and OpenID Connect: The gaming client does not manage player passwords. Instead, it uses the OAuth 2.0 Authorization Code Flow to delegate authentication to a trusted identity provider (e.g., Google, Apple, or a casino's own loyalty program SSO). After authentication, OpenID Connect is used to retrieve a signed ID Token containing the player's verified identity. This token is passed to the administration server, which uses it to authorize the gaming session, reducing the system's security liabilities.

3. Combination with WebRTC (Web Real-Time Communication): For certain peer-to-peer games (e.g., fast-paced action games), after the administration server has verified player locations and matched them, it acts as a signaling server to broker a direct peer-to-peer connection between the player clients using the WebRTC standard. Game state updates are sent directly between clients over a RTCDataChannel, providing extremely low latency. The administration server does not need to relay game traffic but still receives periodic heartbeats (with location data) to ensure ongoing compliance and collects the final, signed game result from the clients to determine the winner.