|
 SBG Global,
Action Poker in
Danger of Losing
Domains
Action Poker, one of
the defendants in a
patent suit filed
late last month, was
seemingly unaware of
the complaint which
threatens to put the
company in the dark
if plaintiff, 1st
Technology, is
rewarded a default
judgment.
Gambling911.com
first broke the
story last week that
a complaint filed in
a Missouri Supreme
Court against seven
online-gaming
companies alleging
infringement of U.S.
Patent No. 5,564,001,
titled “Method and
System for
Interactively
Transmitting
Information Over A
Network Which
Requires Reduced
Bandwidth” could
result in default
judgments and
potential
confiscation of
domain names.
Those named in the
suit include:
Digital Gaming
Solutions SA, Costa
Rica International
Sports, Action Poker
Gaming Enterprises
and SBG Global; two
Norwegian companies:
Playsafe Holding AS
and eCom
Enterprises; and
Digital Gaming
Network, Ltd., which
is based in Curacao.
Costa
Rica International
Sports is also known
as BetCRIS.com and
is a popular sponsor
of the
Gambling911.com
website. That
firm was meeting
with its legal
counsel this week in
order to respond to
the complaint and
determine the best
strategy.
A
former manager of
Action Poker claims
that the online
poker firm was not
aware of this
particular
complaint. SBG
Global, likewise,
was not responding.
A big
mistake says
Ronald J. Riley,
President -
www.PIAUSA.org.
"Inventors are
gamblers," Riley
told
Gambling911.com.
"We spend years
developing our
inventions and then
we end up in a high
stakes poker game
with those who think
that they should be
able to cheat. Most
of the time we
understand the game
much better than our
adversaries. The end
result is that we
almost always win
the hands which we
decide to play."
Riley also agrees
regarding our
assessment that this
matter could get
extremely ugly.
"You are right it
could get ugly. I
think that Bodog's
belligerent conduct
played a big part in
the other's being
sued. If an inventor
decides that an
industry is
collectively trying
to steal their
intellectual
property then they
have no choice
except to adjust
attitudes.
"The longer this
drags out the more
expensive it will be
for the infringers.
For an example of an
infringer paying
dearly for such
conduct just take a
look at Research in
Motion. They turned
what I believe could
have been a five
million dollar case
into a $612 million
dollar case. They
did delay paying for
about four years,
but doing so cost
them THIRTY times as
much money. Even
worse than that is
that every inventor
knows that RIM's
egos will get in the
way of rational
business dealings.
They now have a huge
bulls eye painted on
their back. After
all, if one has to
battle with an
adversary knowing
that they are poor
tacticians and that
they have deep
pockets makes them
an appealing target.
With that in mind
keep you eye on
Bodog, it is only a
matter of time
before unbridled ego
leads to to even
bigger losses.
"Those who settle
the soonest will get
the best deal, while
those who stand
tough will pay far
more. This is the
way the process
works once a war is
started."
Industry observers
are watching this
matter closely.
Bodog's now retired
founder, Calvin Ayre,
has classified the
folks behind 1st
Technology as
nothing more than
"patent trolls" and
essentially "they
have no case".
Bodog
representatives have
made the claim that
1st Technology would
not be able to sue
the latest
defendants based on
their current
approach. The
rep declined to be
named.
"That patent that
they are suing under
had been challenged
formally in the
Patent process by
that now dead
explier and so
anyone sued under
that patent can stay
the process by
getting a copy of
this from their
lawyers and kill
this action for a
couple of years."
1st Technology has
also gone after
affiliates and
sponsors of Bodog.
----
Christopher
Costigan,
Gambling911.com
Publisher
CCostigan@CostiganMedia.com
Originally published
May 12, 2008 10:32
pm EST
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