Supplier News

US – Acres and IGT continue cashless patent dispute

By Lewis - 28 February 2024

The three-year dispute between IGT and Acres added a new chapter in February as IGT continues to assert its patent No. 9,269,231 – facilitating use of of financial transaction device in a cashless wagering system in a gaming system.

In 2021, IGT asserted that Acres’ Foundation casino management system infringed on at least four patents out of a pool of over 200 assimilated patents pertaining to cashless wagering. IGT also demanded Acres pay royalties, which would have increased the price casinos pay for Foundation. In response, Acres submitted prior art evidence to the United States Patent Office (USPTO) and requested a reexamination of the four patents.

In November 2023, the USPTO made it much more difficult for IGT to prove that the cashless capabilities of Acres Foundation infringe upon any IGT patent by rejecting patent claims against Acres’ Foundation CMS. The USPTO completed a full review of the four patents and rejected each claim that IGT asserted against Acres.

“Foundation provides operators with a wide range of new, unprecedented capabilities,” said John Acres of the USPTO decision. “Presuming the findings from the USPTO stand—which I believe is highly probable—all claims of infringement against Foundation will be dismissed and Foundation pricing will not increase, delivering a win for Acres and for our casino customers. In my opinion, these patents should never have been asserted against us.”

Since the November ruling by the USPTO, IGT has appealed the patent rejection by amending or removing claims involving prior art that it asserted against Acres. In a February 26, 2024 statement IGT announced that the USPTO has reaffirmed for the second time the validity of US Patent No. 9,269,231. “This patent covers fundamental cashless technology and is one of four patents being asserted against Acres. IGT will continue to vigorously protect its valuable intellectual property as it brings new and exciting technology to the gaming industry,” said Nick Khin, IGT COO Gaming.

Responding to the announcement, Acres’ Noah Acres immediately fired back: “In order to retain the validity of ‘231, IGT has had to significantly modify its claims. Without those aspects, the possibility of IGT prevailing over Acres is greatly diminished. It is IGT’s legal burden to prove that Acres Foundation infringes the claims of the ‘231 patent. Because those claims are diminished, it will be much more difficult for IGT to prove infringement.”

“IGT’s case against Acres Foundation was feeble when it was filed nearly three years ago,” added Noah Acres. “Recent rulings by the USPTO makes their case so much weaker, there might not be any case left at all. If there was ever a legitimate case to begin with.”

Acres is pursuing charges of inequitable conduct against IGT.