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Japan – Universal suing Aruze Gaming for unpaid license fees

By - 25 September 2017

Universal Entertainment is suing Aruze Gaming America for US$890,684 for its failure to pay licensing fees for its technology.

The two companies are linked by Universal’s founder and former Chairman Kazuo Okada, who owns Aruze Gaming America privately.

In a Jasdaq filing, Universal said: “Aruze Gaming America has continued to violate an agreement that it has executed with the company to pay it patent licensing fees for company-held patents by not paying said fees whatsoever. Although the company has continued to issue citations to AGA, due to the latter showing no indications that it will comply with those citations, the Company has brought a legal action.”

“In addition to the aforementioned violation of the agreement, according to an investigation that it performed, the company has verified that AGA has continued to use Company-held patents without permission, and that there is an extremely high possibility that it is manufacturing and selling products using those patents,” it added. “The company will proceed to examine legal action against this act by AGA of using Company-held patents without permission, including demanding an injunction to stop said manufacture and sales activities by AGA.”

The Friday filing to Jasdaq clarified that Aruze Gaming America had “no capital relationship” with Universal Entertainment as the former’s shares were “wholly owned by Kazuo Okada although there are business relationships such as purchase of slot machines.”

Universal has completed an investigation into Mr. Okada’s business dealings and found him guilty of ‘three acts of fraudulence’ resulting in him being axed as Chairman.

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