Las Vegas casinos are now facing three separate lawsuits for patent infringement of Internet technologies. Two of these cases just came out in the past couple of weeks. Depending on the outcome of these lawsuits, the casinos may have to drastically change their Internet marketing campaign.
Lawsuit from Email Link
Email Link is an Internet technology firm based out of Newport Beach. Back in November 2010, they received a patent dubbed only as the “176 Patent.” The firm claims that various casino operators have violated the intellectual property rights guaranteed under said patent.
They have filed lawsuits listing Treasure Island LLC, Wynn Resorts Ltd., Las Vegas Sands Corp., Cosmopolitan Hotels & Resorts Inc., MGM Resorts International, Caesars Entertainment Corp. and Hard Rock Hotel Holdings LLC as defendants. They allege that the defendants violated the terms of the patent when they engaged in the practice of transmitting emails containing links to website pages. The website pages and all data on them was owned by the defendants themselves, not Email Link.
Email Link is arguing they have the sole right over sending emails with promotional links in them. Unfortunately, this is standard marketing practice of most companies. Will Email Link may need to show why they are issuing this lawsuit against these defendants in particular?
This lawsuit raises a can of worms for the entire online casino industry. How will it pan out and in what ways will it impact online casinos? Will they have to change their entire email marketing campaign? Will they have to give up on email marketing all together?
Webvention’s Lawsuit
Webvention is suing several companies for violating its rights on a patent giving them the right to all “structures and methods for organizing, presenting and accessing information.” One of the defendants is Las Vegas Sands.
Although Webvention’s some critics claim Webvention’s claim is ludicrous, it may have some merit to it. Namely, their technology has been licensed by a number of leading technology firms, including Google. Others feel that if large corporations are willing to pay to license these processes, Webvention’s patent must cover the areas of law they assert in their lawsuit.
Outstanding Lawsuit from Content Interactive
Email Link and Webvention are not the first companies to file lawsuits against casino owners. Months ago, Content Interactive filed a lawsuit against three different companies, including Fiesta Palms LLC. Fiesta Palms is the owner of Palms Hotel Casino.
What Impact Will These Lawsuits Have in Court?
These lawsuits are likely to consume millions of dollars in legal fees. The fact they are targeting fairly common practices is certainly something to be concerned of. Some people may argue that these cases will be thrown out of court, but it is much too early to dismiss the possibility a judge may find for the plaintiffs. If that were to happen, it would have serious implications for many businesses around the country, including the casino industry.