International Game Technology last week quit an industry group that's trying to set standards to link casinos' hightech systems.
An official for Reno-based IGT said the company agrees with the need for communication between casino systems, but believes recent policies set by the Gaming Standards Association may threaten its patents.
The background for IGT's action: From slot machines to back-office management systems, the gaming industry is a heavy user of technology.
But unlike other industries, the technology companies supplying the gaming industry hadn't established protocols the standards that would allow pieces of gaming technology from different vendors to communicate with each other.
The Gaming Standards Association, which was established in 1998 to begin sorting out the situation, estimates that at least 50 computer languages are used in the gaming industry.
IGT strongly agrees with that goal, said Ed Rogich, the company vice president of marketing.
"We've been supportive of GSA since it was founded," he said.
But IGT, the nation's dominant maker of slot machines, wasn't willing to put its patents at risk to support an industry goal.
The association's board voted in mid- June to require manufacturers to promptly notice the standards-setting group of any patent activities that might effect the creation of industry standards.
Rogich said IGT fears the rule would require it to disclose too much to its competitors, who also are members of the Gaming Standards Association.
The association said it was driven by the advice of lawyers who specialize in intellectual property such as patents.
"Standards bodies like GSA must adopt appropriate policies to govern their actions and protect themselves from a growing number of civil actions brought against private parties by the Federal Trade Commission and by private litigants," said Tom French, senior partner in the Palo Alto, Calif.
office of Gray Cary Ware & Freidenrich.
"The GSA board of directors has a fiduciary responsibility to its membership to enact a policy that serves the interest of the membership and the industry as a whole." Both sides expressed hope that the dispute can be smoothed over.
"It remain our hope that we can resolve this issue and rejoin GSA," said Rogich.
Gregg Solomon, senior vice president of operations for Mandalay Resort Group and chairman of GSA, said, "Hopefully IGT will decide to participate in GSA once again in the future.
However, we will not be deterred from our mission GSA and its member companies remain committed to the development of industry-wide open standards that enable innovation."
