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International Game Technology

(IGT) - Get Free Report

has filed a patent infringement lawsuit against rival

Alliance Gaming Corp.

(AGI) - Get Free Report


The suit, filed in federal district court in Las Vegas, alleges Alliance and its Bally Gaming and Bally Gaming International subsidiaries are infringing on IGT patents covering gaming machines and systems that feature additional payout indicators like bonus wheels and touch screen devices that allow for player interactivity, IGT said in a release late Wednesday.

IGT said it received one of the patents Tuesday, although this patent is "based on a continuation" of an application originally filed in 1994.

Alliance Gaming said the principal allegation of the complaint is that its Monte Carlo slot machine infringes on the recently issued patent. But Alliance said the Monte Carlo game was originally introduced in the 1970s and was updated and reintroduced three years ago. "The company believes there is no merit to IGT's 'new' claim that a game invented and introduced nearly 30 years ago infringes on a recently issued patent," Alliance said in a release.

Dave Johnson, general counsel for IGT, said his company doesn't plan to seek a preliminary injunction or other short-term relief that would affect customers.

Both companies manufacture slot machines and gaming systems.

IGT shares finished Wednesday's session down 32 cents, or 0.9%, at $33.80. Alliance stock ended the session down 6 cents, or 0.5%, at $11.41.