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IGT wins patent case against Chicago rival

Tuesday, March 4, 1997 | 11:59 a.m.

A U.S. District Court judge in Chicago last week awarded the damages to Reno-based IGT for patent infringement of its slot machine technology by WMS Gaming Inc.

Brian McKay, IGT Vice President and General Counsel, on Monday said the technology is a crucial element to all modern reel-type slot machines and allows for higher odds and bigger payouts.

"It's a very significant decision," McKay said, adding that the patent has been a essential part of IGT machine operations.

IGT, the world's largest slot machine manufacturer, bought the patent in 1989, owns the rights to it and has been licensed to use it since 1987, McKay said.

The company licensed the technology to other manufacturers, but not WMS, which has been selling its Model 400, reel-type machine that uses the technology.

WMS sued IGT in 1994, claiming its patent was invalid. IGT countersued.

In September 1996, U.S. District Judge James Holderman ruled that IGT's patent was valid and WMS infringed it willfully.

After a damages trial last week, Holderman awarded IGT $10.75 million in actual damages, an amount that was tripled for willful infringement.

"They're not allowed to manufacture, sell or distribute that 400 machine," McKay told the Reno Gazette-Journal.

WMS issued a statement saying the company would appeal.

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