IGT, Bally patent litigation rolls on

In the latest chapter of International Game Technology sues Bally Technologies (or the other way around, depending on whose press release is being read), a federal judge in Delaware said Bally infringed on two IGT slot machine patents.

For its part, Bally said IGT had originally claimed some 200 different patent infringements. But following patent re-examination proceedings, all but eight of the claims were withdrawn.

"For the two products partially in question, the company has undertaken technical changes to ensure non-infringement," said Ramesh Srinivasan, executive vice president of Bally Systems. "The revenues derived from these products to date are immaterial to Bally’s financial position."

One Wall Street analyst thinks IGT and Bally need to set aside their patent lawsuits and focus more on developing better products for the marketplace.

“In our view, the latest news represents just another twist on a saga that has now dragged on for three years and will likely continue for more periods to come,” Macquarie Securities gaming analyst Joel Simkins told investors. “We think both companies would be better served to put this continued litigation behind them, particularly as the only folks making money on these cases are the lawyers.”