IGT Settles Dispute with Australian Aristocrat

Wednesday 12 October, 2011 16:49

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In 2006, the Sydney, Australia-based Aristocrat Leisure gambling group sued New York trading gaming company, International Game Technology in the United States over a patent dispute.

Back then, Aristocrat claimed that the gaming machine designer and manufacturer, IGT breached patent rights relating to multi level progressive machines, such as Aristocrats' Hyperlink as well as IGT's Fort Knox products.

Several attempts were made over the following years to reach an amicable agreement, but this was never achieved.

Finally, in November last year, IGT filed a lawsuit claiming that the Australian gambling firm's Viridian WS gaming machines infringed two of its patents which related to fundamental capabilities for authentication of software.

Australian gambling company Aristocrat consequently countersued International Gaming Technology in an Australian court over patents infringement relating to a side bet feature on its slot machines.

This week, it was announced that IGT settled its dispute with Aristocrat Leisure and both groups agreed to cross license their patents. This means that the groups will have a right to offer the products, subject to specific royalty obligations.

IGT and Aristocrat to Benefit from Settlement

Both IGT and Aristocrat gambling groups are set to benefit from the settlement and subsequent cross license agreement. IGT will be able to penetrate the Australian and Asian-Pacific gambling markets which are growing at a substantial rate, and where Aristocrat Leisure Ltd. already has a strong foothold.

In addition, the shares of both gambling groups are expected to improve now that IGT and Aristocrat settled their dispute as there are no overhanging lawsuits and patent infringement claims. Legal expenditure will also be reduced as a result of the agreements.

Analysts believe that Aristocrat's top line growth will be driven thanks to the settlement, and IGT will be free to continue focusing on its core slot machine products.

The Managing Director and Chief Executive Officer of Aristocrat, Jamie Odell said: "Aristocrat's intellectual property has taken a proactive approach to aggressively protect and defend intellectual property as a core part of our business strategy."

"This settlement with IGT will now allow us to focus on our intellectual property efforts against other parties," he added.

Aristocrat Leisure Ltd. provides gaming solutions across the globe and is licensed by 200 regulators. The group's products and services are spread across 90 countries and it offers electronic gaming machines, interactive video terminal systems, casino management systems and more.

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