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Konami Gaming Inc lost a patent appeals case in a federal appellate court on Monday. Konami alleged High 5 Games LLC had infringed on one of their patents in 2014, but the court invalidated the patent.
The federal court backed up lower court rulings that said Konami’s patents were indefinitely worded and the subjects were not eligible for patents.
Konami alleged High 5 Games had used their “Super Stack” inventions without permission. But, High 5 Games was able to argue their change was simply a small change to the rules.
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Lower courts used the precedent of a 2016 U.S. Court of Appeals that said a new method of blackjack could not be patented.
The ruling has potentially far-reaching consequences for the slot machine industry which relies on innovation to stay ahead of the competition. The ruling may level the playing field and allow more companies to utilize newer technology that boosts profits.
Other companies including International Gaming Technology had previously come out in favor of Konami and argued that players were familiar with the games and not the countries. IGT and Konami are worried that by losing patents they will lose customers to knock-off games.
A version of this article first appeared at reuters.com
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