Slot maker sued over patent infringement

RENO, Nev. -- Reno-based International Game Technology has sued Alliance Gaming Corp., claiming several of its rival's new slots and gambling systems infringe on IGT patents.

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In the suit filed earlier this week in U.S. District Court in Las Vegas, the world's biggest slot maker accuses Alliance of infringing on six IGT patents covering slots and systems featuring bonus wheels and touch-screen display devices.

Also named in the suit Tuesday were Alliance subsidiaries Bally Gaming and Bally Gaming International.

"IGT has always vigorously defended its intellectual property," said Dave Johnson, general counsel for IGT. "Consistent with that philosophy, we have filed this case to stop defendants from misappropriating IGT's patented innovations."

Alliance denied any wrongdoing, saying "there is no merit" to IGT's claims.

Gambling analysts said the suit is not good news for Alliance, and that prolonged litigation with IGT would adversely affect the company's per-share stock price.

"Discussions with both companies would indicate that each believes it has a very strong case," wrote analysts in a Deutsche Bank report.

In late afternoon trading Friday, IGT shares slipped 56 cents, or 1.6 percent, to $33.85 on the New York Stock Exchange, while Alliance shares rose 24 cents, or 2.1 percent, to $11.64.