BYI v. IGT: Antitrust Bifurcation Denied as the Case Moves Toward Trial

Implications: The on-going wheel-bonusing litigation between Bally and IGT will come to a head this November; and, thanks to a recent ruling by the judge, the same jury will hear not only the patent issues but also BYI's antitrust allegations.

Analysis:  There are three pending patent cases between Bally and IGT; but, thanks to some negotiations over the last many days, it now looks like the main case -- the case involving wheel-based bonus games -- will end up as the first one to either settle or hit the jury.  Indeed, the case is already tentatively on the calendar for November, taking the place of the otherwise-scheduled Delaware litigation between these same two firms.

One interesting thing about the up-coming trial: all issues, including not only the patent issues but also BYI's antitrust counterclaims, will as of now be heard by a single jury.  This is a bit of a disappointment for IGT, which had requested that a separate jury hear the antitrust charges and, at that, only after a first jury had heard the patent case and ruled.

Who cares?  Well, IGT presumably wanted the antitrust case separated from the main case for two reasons.  First, the antitrust case will include a lot of evidence that, while it might not ultimately be enough to win the antitrust issues per se, will certainly make IGT look bad.  That matters because some of the patent issues might be close calls; and the jury that hears all this evidence might as a result disfavor IGT on those borderline patent issues. 

Second, in the antitrust case, Bally will be able to put in front of the jury certain testimony that would not otherwise have been admissable.  That testimony (for instance, testimony from a former IGT employee who is likely to himself question the validity of the IGT patents) could help BYI on the merits of the patent case, even though it is coming in only through the antitrust issues.

What's next, then?  The next big news event from the case ought to come at the end of June, when there will be a hearing on all the pending motions for summary judgment in this main case.