Playtech Wins Gaming Software Patent Case

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Playtech is one of the leading online gaming software providers to the Internet casino industry. Over the last two months it has been fighting a patent case in the High Court of Justice, Chancery Division in London. The plaintiff in the case was Cranway Limited. The case was filed against a number of other companies related to Playtech as well.

Cranway described the patent as: "This invention relates to an interactive, real time, realistic "home" computer gaming system using general purpose computers. Aspects of the invention concern auditing and security to ensure fairness for players and prevent players defeating the outcome of a game; fast, efficient communication to enable reliable, low cost, real time, realistic operation; accounting; and enabling players to play a variety of games."

In the case Playtech was represented by Daniel Alexander QC and Adrian Speck. Playtech also called upon Professor Ian Leslie, Professor of Computer Science at the University of Cambridge Computer Laboratory, to argue on its behalf. At the outset Playtech denied that there had been any infringement. Professor Leslie stated that Cranway had described the patent only in general and basic terms. He said that the description was concerned with "the functionality of the system rather than details of its design." Therefore it could not be construed as a patent. More specifically Playtech argued that the patent was invalid because the claimed invention was not new; the claimed invention was obvious and the claimed invention was not in fact an invention.

The Honorable Mr. Justice Lewison heard the arguments. He pronounced the judgment that Cranway's complaint had failed because the patent was invalid. Had the patent being valid, however, then there were grounds for infringement.

The news that would be more worrisome to online players is that Playtech has reported that it is full year earnings would be lower than indicated earlier. This statement was released along with the financials for the second quarter. As a result the shares of the company fell by 20%. Playtech gave two reasons for the lower expected earnings. One was the subdued economic environment world over. The second reason was that it's joint venture with William Hill had not taken off as expected.

However Playtech was comfortable with the projections and said that there was no cause for concern in the medium term. William Hill Online was shaping up well and would soon start functioning as expected. Playtech also announced another strategic partnership that would contribute in the future. Playtech would be offering its Casino and Poker products to the Serbian State Lottery, which had monopoly in online gaming in that country. Playtech also pointed out that its agreements with Betfair Casino and NetPlay TV would be yielding dividends by the end of this year.

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