Gaming equipment manufacturer LT Game Ltd and two additional companies have agreed to pay IGT $800,000 to settle a dispute arising from a commercial deal signed in 2016.
The deal, which was filed by LT Game’s parent company, Paradise Entertainment Ltd, would have given IGT the exclusive global right to make, market and distribute electronic gaming systems involving “assignment and license of certain patents and associated technology” controlled by the LT Game side, with the exception of products for sale in the Macau market for a 15 year period.
Subsequent to the signing of the agreement, a dispute arose between LT Gaming and IGT as to whether the LT Gaming were required to provide certain technology (that they didn’t already have) to IGT that may be required for IGT to make and place the licensed Products under the agreement.
In a filing on the Hong Kong Stock Exchange, Paradise Entertainment stated: “On 17 October 2017, upon commercial negotiation of the parties with the view to resolving the Dispute, the LTG Parties agreed in writing with IGT that they shall pay to IGT a sum of US$800,000 (equivalent to approximately HK$6,240,000) (the ‘‘Settlement Amount’’) for complete resolution of the Dispute, which was determined based on the sharing by the LTG Parties of the estimated costs for the required technology.”
The filing also noted two sides agreed the sum for settlement of the dispute would offset any initial earn-out payments owed by IGT to the LT Game Ltd under the 2016 licensing deal, for a period up to the end of September 2018.