Silicon Gaming sues IGT

Monday, March 8, 1999 | 11:29 a.m.

Silicon Gaming Inc. and International Game Technology are suing each other over rights to one of the hottest forms of video game -- multi-hand poker.

Silicon, the struggling Palo Alto, Calif., slot maker that developed the Odyssey game platform, initially sued IGT last month in federal court in California.

Silicon's lawsuit sought a ruling that the patent for Triple Play Poker, a game designed by Ernie Moody of Action Gaming, was invalid. Moody sold his rights to the game to IGT and receives a royalty of $15 per machine per day from casinos offering Triple Play Poker to their customers.

Silicon said it had filed its lawsuit due to the threat of litigation by IGT. In response, IGT sued in federal court in Nevada, alleging Silicon's new Multi-Draw Poker infringes on the Triple Play patent.

The IGT suit will be heard in Las Vegas and Silicon said it would drop its suit in California.

In announcing its lawsuit, Silicon President Andrew Pascal referred obliquely to the ongoing dispute between IGT and casino operators who object to paying royalties or licensing fees such as that required by Action Gaming.

"I can only conclude IGT is attempting to inappropriately wield its dominant position in the marketplace in a desperate attempt to protect its revenue from its higher-priced games," Pascal said.

"We believe the market wants the opportunity to buy games outright, without the kind of daily per-machine charges that IGT demands."

An IGT spokesman said the company believes it will prevail. No court date has been set.