IGT: Settlement is a win for cashless slots

Tuesday, Jan. 21, 2003 | 10:50 a.m.

Slot machine manufacturers International Game Technology and Aristocrat Technologies Inc. have settled their patent and trademark infringement suits against one another -- a move that IGT says will clear the way for any casino in the United States to implement so-called cashless slot machine technology on the casino floor using virtually any combination of systems provider and game maker.

Cashless slot machines can dispense paper vouchers in addition to coins.

In December 2001 IGT filed suit against Aristocrat, alleging that the Australian company infringed its patents after Aristocrat acquired Casino Data Systems, which IGT in 1996 provided with confidential technology.

The following month Aristocrat counter-sued, alleging patent infringement, asking that IGT's lawsuit be denied and that some of IGT's patents be invalidated.

The suits centered on patents and intellectual property rights in the fields of cashless technology, bonusing and slot machine hardware.

The terms of the settlement are confidential.

"In addition to being a win-win for IGT and Aristocrat, the agreement is a win for cashless gaming and the industry as a whole," said Shawn Van Asdale, director of strategic development for IGT.

As a result of the settlement and other cashless patent licenses administered by IGT subsidiaries, every major manufacturer of cashless systems and slot machines is now licensed to the cashless patents, he said today.

"We are pleased that Aristocrat and IGT were able to come to an agreement that is beneficial to both parties," said Kent Young, vice president of marketing for Aristocrat.

Aristocrat had called IGT's suit "yet another example of an attempt by IGT to use the legal system with a frivolous lawsuit to prevent a competitor from coming to market with new and innovative products."

"(The lawsuit) is a detriment to operators in our industry and is an insult to the concept of open competition and free enterprise, with the best products and service to be determined only by the acceptability in the marketplace," Aristocrat President Mark Newburg had said.

Reno-based IGT is considered the largest manufacturer of slot machines in the world and controls from 60 to 70 percent of the domestic market.

Aristocrat, which has a greater presence abroad, is considered one of the world's largest slot makers.