DCT

1:26-cv-07225

Sideprize LLC v. Vetnos LLC

Log In
Key Events
Complaint
complaint Intelligence

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 1:26-cv-07225, S.D.N.Y., 08/24/2026
  • Venue Allegations: Venue is based on Defendant Vetnos, LLC's headquarters being located in the Southern District of New York, and a substantial portion of the events giving rise to the action having occurred in the district.
  • Core Dispute: Plaintiff seeks to correct the inventorship of thirteen U.S. patents under 35 U.S.C. § 256, alleging that its assignor, Richard Baccellieri, made substantial contributions to the conception of the claimed inventions and was wrongfully omitted.
  • Technical Context: The patents relate to systems and methods for skill-based fantasy sports games that feature fixed-odds payouts and balanced player-vs-player matchups, differentiating them from traditional season-long or pari-mutuel fantasy sports formats.
  • Key Procedural History: The complaint alleges that during the prosecution of the application leading to the '543 Patent, a named inventor submitted a declaration to the U.S. Patent & Trademark Office in 2018 emphasizing the novelty of the "fixed odds" concept to overcome rejections.

Case Timeline

Date Event
2006 Richard Baccellieri implements "Rapid Bet" in-game wagering platform.
2011 Joseph Brennan and Daniel Orlow co-found Line Gaming Holdings Corporation (LGC).
2013 Richard Baccellieri begins working with LGC on a fixed-odds, parlay-style fantasy game.
2013-04 Kenneth White begins working with LGC.
2013-07 Key features of the parlay-style game allegedly discussed by White and Baccellieri.
2014 LGC changes its name to Game Sports Network (GSN).
2014-09-08 Priority Date for all Patents-in-Suit (filing of U.S. Provisional App. No. 62/047,473).
2017 Baccellieri and Brennan stop working for GSN; GSN changes name to Avaago, Inc. and goes bankrupt.
2018 Vetnos, LLC acquires assets from Avaago, Inc., including rights to the patents.
2018 Declaration submitted to the PTO regarding the '543 Patent application.
2019-07-16 '543 Patent Issues.
2021-06-22 '264 Patent Issues.
2021-10-26 '147 Patent Issues.
2022-10-11 '057 Patent Issues.
2022-12-12 '822 Patent Issues.
2023-02-14 '754 Patent Issues.
2024-01-30 '688 Patent Issues.
2024-05-07 '718 Patent Issues.
2024-10-08 '017 Patent Issues.
2025-08-19 '278 Patent Issues.
2026-01-13 '636 Patent Issues.
2026-02-10 '650 Patent Issues.
2026-02-10 '649 Patent Issues.
2026-06 Baccellieri assigns his ownership rights in the Patents to PrizePicks.
2026-08-24 Complaint Filed.

II. Technology and Patent(s)-in-Suit Analysis

This action does not allege infringement. The analysis below explains the technology of the patents for which Plaintiff seeks to correct inventorship.

U.S. Patent No. 10,353,543 (the "'543 Patent") - "Method and System for Presenting and Operating a Skill-Based Activity"

Issued July 16, 2019

The Invention Explained

  • Problem Addressed: The patent's background section describes traditional fantasy sports as being time-consuming and difficult for casual fans to participate in, particularly because of the need to commit before a season begins and the time required to draft and manage a team US10353543B2, col. 2:1-40
  • The Patented Solution: The invention is a computer-implemented system for a skill-based game where a server provides a set of matchups between sports participants (e.g., athletes) to users' devices US 10,353,543 B2, abstract Users select the predicted winners for these matchups. The system then calculates and assigns payouts to users based on their success against a pre-defined "fixed payoff odds" table, distinguishing it from pari-mutuel games where users compete against each other US 10,353,543 B2, col. 3:1-8 The patent also describes generating matchups where the participants are "generally equal or equally weighted" to ensure the game requires a "substantial amount of skill from the fan" US 10,353,543 B2, col. 8:8-15
  • Technical Importance: This system represents a shift from traditional, pool-based fantasy sports to a more accessible, "pick'em"-style game where users play against "the house" with predetermined odds, lowering the barrier to entry for casual sports fans Compl. ¶24d

Key Claims at a Glance

  • The complaint does not assert specific claims but alleges contribution to the conception of "one or more claims of each Patent" Compl. ¶1 Independent claim 1 is representative of the core technology and includes the following essential elements:
    • A system with a server comprising a processor and machine-readable code.
    • The server serves a set of matchups of participants along with an associated fixed-payout table to presentation devices.
    • The server receives user roster data characterizing a set of user-selected winners of the matchups.
    • The server updates event data pertinent to the actual events.
    • The server uses the updated data to calculate and assign payoffs to users based on the fixed payoff odds, where the determination of a winner is based solely on the user's selections.

U.S. Patent No. 11,042,264 (the "'264 Patent") - "Method and System for Presenting and Operating a Skill-Based Activity"

Issued June 22, 2021

The Invention Explained

  • Problem Addressed: The '264 Patent, a continuation of the '543 Patent, addresses the same problems of time-commitment and complexity associated with traditional fantasy sports US11042264B2, col. 2:1-40
  • The Patented Solution: The '264 Patent describes a similar computer-implemented system for a skill-based game with fixed-odds payouts. It further details a "matchup tool" used by an operator to create "evenly balanced matchups" by, for example, accessing and ranking athletes based on historical and expected fantasy point performance US 11,042,264 B2, col. 17:1-67 The system presents these matchups to a user, who makes selections, with outcomes determined by comparing the fantasy points scored by the athletes in the actual sporting events US 11,042,264 B2, col. 9:1-15
  • Technical Importance: The invention provides a system architecture for creating and managing the specific "evenly balanced matchups" that are a core component of the skill-based, fixed-odds gaming experience Compl. ¶23b Compl. ¶24a

Key Claims at a Glance

  • The complaint does not assert specific claims. Independent claim 1 is representative and includes the following essential elements:
    • A computer-implemented method for providing a user interface for organizing a skill-based game.
    • Receiving a plurality of events and determining a set of participants expected to compete.
    • For each participant, predicting their performance to create a ranking.
    • Causing display of each participant according to the ranking, allowing an operator to use the interface to create "evenly balanced matchups".
    • Systematically evaluating the matchups to determine if they have become unevenly balanced and displaying a graphical alert if they have.
    • The interface allows an operator to graphically remove unevenly balanced matchups.

U.S. Patent No. 11,157,147 (the "'147 Patent") - "Method and System for Presenting and Operating a Skill-Based Activity"

Issued October 26, 2021

  • Technology Synopsis: This patent, related to the '543 and '264 Patents, further describes the system for presenting a skill-based game. It focuses on the use of a "fixed-payout odds" structure, which the complaint alleges was a key concept contributed by Baccellieri Compl. ¶23a
  • Alleged Contributions: Plaintiff alleges Baccellieri contributed to the conception of claims requiring "fixed-payout odds" Compl. ¶23a

U.S. Patent No. 11,579,754 (the "'754 Patent") - "Method and System for Presenting and Operating a Skill-Based Activity"

Issued February 14, 2023

  • Technology Synopsis: This patent continues the description of the skill-based gaming system. It also describes the "fixed-payout odds" concept that Plaintiff claims Baccellieri conceived Compl. ¶23a
  • Alleged Contributions: Plaintiff alleges Baccellieri contributed to the conception of claims requiring "fixed-payout odds" Compl. ¶23a

U.S. Patent No. 11,465,057 (the "'057 Patent") - "Platform for Enhanced Skill-Based Games with Fixed Odds Payouts"

Issued October 11, 2022

  • Technology Synopsis: This patent describes a platform for enhanced skill-based games. It covers concepts of an "assigned fixed odds payout" and that "each skill-based play of the advanced choice game has equally probable outcomes," both of which are central to the inventorship dispute Compl. ¶23a Compl. ¶23b
  • Alleged Contributions: Plaintiff alleges Baccellieri contributed to claims requiring an "assigned fixed odds payout" and "equally probable outcomes" Compl. ¶23a Compl. ¶23b

U.S. Patent No. 11,839,822 (the "'822 Patent") - "Platform for Enhanced Skill-Based Games with Fixed Odds Payouts"

Issued December 12, 2023

  • Technology Synopsis: This patent also describes a platform for skill-based games. It claims concepts including a "progressive fixed odds payout" and that each play has "equally probable outcomes" Compl. ¶23a Compl. ¶23b
  • Alleged Contributions: Plaintiff alleges Baccellieri contributed to claims requiring a "progressive fixed odds payout" and "equally probable outcomes" Compl. ¶23a Compl. ¶23b

U.S. Patent No. 11,977,718 (the "'718 Patent") - "Risk Assessment"

Issued May 7, 2024

  • Technology Synopsis: This patent focuses on risk assessment within the gaming system, including creating matchups where outcomes are "generally equally weighted" and, as a result, "equally probable to occur" Compl. ¶23b
  • Alleged Contributions: Plaintiff alleges Baccellieri contributed to claims requiring "outcomes that are generally equally weighted" and "equally probable to occur" Compl. ¶23b

U.S. Patent No. 11,886,688 (the "'688 Patent") - "Method and System for Presenting and Operating a Skill-Based Activity"

Issued January 30, 2024

  • Technology Synopsis: This patent describes the core skill-based gaming system, with claims directed to a "fixed odds payout" Compl. ¶23a
  • Alleged Contributions: Plaintiff alleges Baccellieri contributed to claims requiring a "fixed odds payout" Compl. ¶23a

U.S. Patent No. 12,112,017 (the "'017 Patent") - "Method and System for Structuring and Deploying an Electronic Skill-Based Activity"

Issued October 8, 2024

  • Technology Synopsis: This patent focuses on structuring and deploying the activity. It claims systems based on a "fixed odds prize table" and outcomes that are "generally equally weighted" Compl. ¶23a Compl. ¶23b
  • Alleged Contributions: Plaintiff alleges Baccellieri contributed to claims requiring a "fixed odds prize table" and "outcomes that are generally equally weighted" Compl. ¶23a Compl. ¶23b

U.S. Patent No. 12,394,278 (the "'278 Patent") - "Fixed Payout Table"

Issued August 19, 2025

  • Technology Synopsis: This patent is directed to the fixed payout table itself. It claims a "fixed odds prize table" and outcomes that are "generally equally weighted within the skill-based game" Compl. ¶23a Compl. ¶23b
  • Alleged Contributions: Plaintiff alleges Baccellieri contributed to claims requiring a "fixed odds prize table" and "generally equally weighted" outcomes Compl. ¶23a Compl. ¶23b

U.S. Patent No. 12,521,636 (the "'636 Patent") - "Platform for Enhanced Chance-Based Games with Fixed Odds Payouts"

Issued January 13, 2026

  • Technology Synopsis: This patent describes a platform for chance-based games but still includes the concept of an "assigned fixed odds payout at a discount from a fair value" Compl. ¶23a
  • Alleged Contributions: Plaintiff alleges Baccellieri contributed to claims requiring an "assigned fixed odds payout" Compl. ¶23a

U.S. Patent No. 12,544,649 (the "'649 Patent") - "Method and System for Structuring and Deploying an Electronic Skill-Based Activity"

Issued February 10, 2026

  • Technology Synopsis: This patent describes a system using "weighted outcomes that are generally equally weighted within the skill-based game" Compl. ¶23b
  • Alleged Contributions: Plaintiff alleges Baccellieri contributed to claims requiring "generally equally weighted" outcomes Compl. ¶23b

U.S. Patent No. 12,544,650 (the "'650 Patent") - "Method and System for Structuring and Deploying an Electronic Skill-Based Activity"

Issued February 10, 2026

  • Technology Synopsis: This patent describes a system requiring a "fixed-odds value" and outcomes that are "generally equally weighted" Compl. ¶23a Compl. ¶23b
  • Alleged Contributions: Plaintiff alleges Baccellieri contributed to claims requiring a "fixed-odds value" and "generally equally weighted" outcomes Compl. ¶23a Compl. ¶23b

No probative visual evidence provided in complaint.

III. Core Inventive Concepts at Issue

This is a correction of inventorship action, not an infringement action. The following analysis focuses on the core technical concepts whose conception is in dispute, rather than on terms for claim construction.

  • The Term: "fixed-payout odds" (and related terms such as "fixed odds payout," "fixed-payout amount," and "fixed odds prize table") Compl. ¶23a

    • Context and Importance: This concept is central to the dispute because Plaintiff alleges it is a key departure from prior art pari-mutuel fantasy sports and that Richard Baccellieri conceived of it Compl. ¶¶23-24 Inventorship will depend on who formed the "definite and permanent idea" of a system where users compete against the house with predetermined payout odds, rather than against a pool of other users. Practitioners may focus on this concept because the complaint alleges it was a key argument used to overcome prior art during patent prosecution Compl. ¶24c
    • Intrinsic Evidence Defining the Concept: The '543 Patent specification explicitly defines this concept by contrasting it with the prior art: "[T]he present invention requires a fixed payout table and each fan has an opportunity to win against the system. This is in contrast to other games, such as pari-mutuel games, where fans play against other fans and payouts are based upon the amount of money that fans associate with their selections" US 10,353,543 B2, col. 8:1-8 This language may be used to define the boundaries of the concept whose conception is at issue.

  • The Term: "equally probable outcomes" (and related terms such as "evenly balanced matchups" and "generally equally weighted") Compl. ¶23b

    • Context and Importance: This concept is also identified as a "key aspect" of the inventions (Compl. ¶24). Plaintiff alleges Baccellieri contributed to the idea of presenting "player matchups of equal chance" (Compl. ¶23). The inventorship analysis may turn on who first conceived of the idea of creating balanced matchups to ensure the game requires a "substantial amount of skill from the fan" US 10,353,543 B2, col. 8:11-12
    • Intrinsic Evidence Defining the Concept: The '543 Patent specification links this concept directly to the skill-based nature of the game, stating: "[I]n order to ensure that the result or outcome of correctly picking the result of a matchup requires a substantial amount of skill from the fan, each matchup is preferably generated so that the pairings are generally equal or equally weighted" US 10,353,543 B2, col. 8:8-15 This suggests the concept is not merely about random pairings but is a deliberate mechanism to create a game of skill.

IV. Other Allegations

  • Allegations Regarding Omission of Inventor: The complaint alleges that Richard Baccellieri was "wrongfully and fraudulently omitted by Daniel Orlow" Compl. ¶2 The stated reason for this omission was "money," as naming Baccellieri as a co-inventor would allegedly "prevent Vetnos from attempting to monetize the Patents through litigation" because Baccellieri never assigned his ownership rights Compl. ¶3 The complaint further alleges that around the time of the provisional application filing, the predecessor company GSN urged co-inventors to assign their rights, but Baccellieri (and another alleged co-inventor, Brennan) refused, and that GSN subsequently "took no steps to remedy its failure to name Baccellieri as an inventor" Compl. ¶¶29-31

V. Analyst's Conclusion: Key Questions for the Case

  • A central factual question for the court will be one of conception: can Plaintiff provide clear and convincing evidence that Richard Baccellieri's alleged contributions, such as proposing a "fixed pay table" and "player matchups of equal chance," constituted a "definite and permanent idea of the complete and operative invention" for one or more claims of the patents-in-suit, as required to establish co-inventorship?
  • A key evidentiary issue will be one of corroboration: what evidence, beyond Mr. Baccellieri's own testimony, will Plaintiff present to corroborate his alleged contribution to the conception of the claimed inventions? The complaint's reference to "email correspondence, as well as by persons involved in the development" Compl. ¶37 suggests this will be a focal point of discovery and trial.
  • The case may also turn on the question of deceptive intent: if co-inventorship is established, the court must determine if the omission of Mr. Baccellieri was "without deceptive intent on his part" as required by 35 U.S.C. § 256. Plaintiff's allegations of a fraudulent omission for monetary reasons Compl. ¶¶2-3 will require Defendant to produce evidence demonstrating a lack of deceptive intent for the omission.