LAS VEGAS, Nov. 25, 2017 /PRNewswire/ -- Patent infringement
cases, in the casino gaming space, have dropped nearly 65% since
the Alice decision in 2014.
Prior to Alice, millions of dollars were squandered by slot
manufacturers seeking to invalidate their competitor's patents.
These cases took years to litigate, and would sometimes
backfire spectacularly.
Perhaps the most famous example of this was when IGT sued Bally
over "The Wheel" patent. When the smoke cleared, the court
found that IGT clearly did not invent the wheel, and lost the
patent for their bonus wheel, the primary bonus feature of the
Wheel of Fortune Game, arguably, the most successful slot machine
of all time.
In 2014's Alice v. CLS Bank, the Supreme
Court ruled that an abstract idea does not become eligible for a
patent simply by being implemented on a generic
computer. This marked a fundamental change in how computer
implemented inventions are evaluated for patent eligibility.
Now, even the most pugnacious patent trolls are starting to
understand that they can easily lose the patent they are seeking to
enforce by pursuing frivolous patent litigation.
Recently, the most bellicose of all patent trolls in the casino
gaming industry, Rembrandt Technologies, sued WMS Gaming for
infringement, and had their patent ruled invalid in the
process.
However, the ramifications of the Alice Decision are not just
felt by trolls.
Patent experts in the casino gaming space, estimate that 60-75%
of all slot machine patents granted prior to 2014 would not be able
to withstand "Alice" scrutiny. The majority of these slot
patents are owned, acquired, or controlled by industry giant
IGT.
Perhaps this would explain why, in the last three years, IGT has
settled all of its infringement cases and entered into
cross-licensing agreements with all of their competitors, including
but not limited to, Aristocrat, Scientific Games, Aruze, AGS,
Ainsworth, Konami, Incredible Technologies, and Everi Games.
"If you can't beat them, Join them"
Apparently, IGT would rather generate a revenue with it's aging
patent portfolio, rather than subject it to the scrutiny that comes
with Alice era patent litigation.
Jamie Klingler, CEO of Scrappy
Elegant Gaming agrees,
"This is a good business strategy by IGT, as most of their
patents share prior art, if any of their patents were to be
invalidated, the exposure could create a domino effect that would
decimate their entire intellectual property portfolio. If the
Alice decision teaches us anything, it is to choose our battles
wisely."
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SOURCE Scrappy Elegant Gaming