PrizePicks is being sued for allegedly stealing the know-how it makes use of to supply participant prop-style, over-under fantasy sports activities video games.
Vetnos LLC, a business-to-business fantasy sports activities supplier, filed a patent infringement and commerce secret misappropriation grievance Tuesday with the Northern District of Georgia after years of allegedly attempting to do enterprise collectively. It claims its patented fixed-odds fantasy know-how is identical software program that runs PrizePicks’ gamers vs home video games.
Vetnos desires curiosity on misplaced income, royalties, and extra financial damages for allegedly jeopardized commerce secrets and techniques from a former worker.
PrizePicks intends to struggle again
PrizePicks fired again on the swimsuit in a press release:
“After years of attempting unsuccessfully to get us to purchase its know-how and mental property, Vetnos has now apparently resorted to a frivolous lawsuit to alter our minds. That’s not a great enterprise or authorized technique. We intend to aggressively defend towards this lawsuit and level out its many errors and outright falsehoods,” stated Jason Barclay, Chief Authorized Officer and Head of Public Coverage at PrizePicks.
Vetnos filed for 3 patents in 2014 and 2015 that secured rights for know-how to handle monetary and efficiency danger inside the fixed-odds format, very like a sportsbook does with the completely different vig and totals on participant prop choices. The grievance claims no fixed-odds DFS participant video games existed earlier than Vetnos developed its know-how.
It licenses these merchandise to Native American tribes with Class II gaming licenses in California and Oklahoma, in response to its website. Each of these states have but to legalize sports activities betting and are key markets for DFS corporations like PrizePicks.
Grievance years within the making
Vetnos claims it repeatedly warned PrizePicks CEO Adam Wexler of the potential copyright infringement concerned with its product, together with throughout an alleged assembly between Orlow and Wexler on the SBC Summit in New Jersey in 2021.
“We apprised PrizePicks of our considerations for a number of years in an effort to resolve this matter amicably, however sadly PrizePicks refused to respect our IP rights, so we have been left with no choice however to hunt assist from the court docket system,” Vetnos co-founder Dan Orlow stated.
Within the grievance, Vetnos alleges that Wexler stated, “We preferred your recreation a lot, we determined to repeat it.”
PrizePicks worker implicated in swimsuit
Vetnos claims a former worker (Steven Kerstein) from its predecessor, Sport Sports activities Community, aided in “copying” Vetnos know-how:
“By copying the Vetnos Expertise, PrizePicks was in a position to launch a fixed-odds day by day fantasy sports activities recreation and study to successfully handle the chance related to providing such a recreation with out participating within the vital trial, error, and loss that Vetnos’ predecessor engaged in to develop the Vetnos Expertise,” the grievance says.
After working in danger administration for GSN’s know-how, Kerstein moved right into a consulting position with PrizePicks in 2018, in response to the grievance. Vetnos claims he despatched confidential data regarding the know-how to his private e mail earlier than leaving GSN, breaching a non-disclosure settlement.
Kerstein now heads firm relations and market intelligence at PrizePicks. The operator has till July 11 to answer the grievance.