Acres Gaming settles suit with IGT, Anchor

Friday, April 25, 2003 | 10:52 a.m.

Acres Gaming Inc. of Las Vegas said Thursday it agreed to settle two federal lawsuits in Las Vegas and Oregon it filed in 1999 against Anchor Gaming and International Game Technology over the ownership of patents for the Wheel of Gold slot machine.

Acres had sued Anchor Gaming and Spin for Cash Wide Area Progressive Joint Venture, an Anchor partnership with IGT, in Benton County, Ore. IGT later acquired Anchor.

The suit alleged Anchor wrongfully used Acres' intellectual property to obtain patents without the consent of Acres, fraudulently concealed the filing of patent applications for the Wheel of Gold slot machine from Acres, was unjustly enriched by retaining the benefits of Acres' technology without compensating Acres and breached fiduciary agreements with Acres.

In Las Vegas, Acres filed counterclaims in a patent infringement and breach of contract lawsuit Anchor Gaming filed against Acres. Acres' counterclaim sought a declaration that Acres owns or co-owns patents related to the Wheel of Gold slot machine.

But Acres, in Thursday's settlement, agreed to relinquish all claims to the Wheel of Gold patents and drop its remaining claims in the Oregon lawsuit. Acres also agreed to assign all rights it may have in the Wheel of Gold patents to former Anchor subsidiary Anchor Coin.

Acres also agreed to license several of its bonusing patents to IGT for a $10 million royalty advance plus other licensing fees. Both parties also agreed to cooperate on the development of new features to be added to several IGT slot machines.