Appellate court affirms patent infringement ruling

A federal circuit appellate court has affirmed a lower court ruling that slot machine maker Bally Technologies infringed on two patents owned by rival International Game Technology.

In a statement, IGT said the patents cover methods of paying bonuses at the slot machines. The case now returns to district court for a determination of damages.

"The bonusing patents in this case cover features that are greatly desired by both operators and players," IGT Chief Legal Officer Robert Melendres said in a statement.

Roth Capital Markets gaming analyst Todd Eilers told investors that Bally has said it implemented technical changes to its affected slot machines so there is no longer any patent infringement.

"We do not believe this ruling will have a material impact on Bally's current systems product offering, nor do we believe there is a material liability," Eilers said.