|Start-up company i2corp.com has successfully settled a dispute over intellectual property with online gambling giant DrHo.com. The David Vs Goliath match over patenting infringement is one of the few of its kind and proves that an Internet patent holds up in court.|
A subsidiary company of i2corp.com, Home Gambling Network, holds a patent to a process that customers worldwide can use to make financial transactions on live games and events electronically. In 2001 they sued operators of DrHo.com, Caribbean Online Ltd, who were accused of patent infringement.
Mel Molnick, Home Gambling Network President, is certainly pleased with the decision and marks it as a warning against other operators: 'As Dr. Ho and Caribbean Online Ltd. have found out, it would have been more economical to license our patent in the first place than to get prosecuted in the courts and have to pay all the associated costs, attorneys' fees and damages.'
The settlement includes the payment of an up front fee with royalties on top for any future revenue made from use of the patent. Considering the Home Gambling Network wanted Dr. Ho shut down both sides have done well come out of the settlement.
Since the success i2corp.com has been contacted by representatives of state governments wanting to pay licensing fees in return for issuing I-gaming operators with the patents. This would give states, currently dependent on inappropriate federal laws, an effective means to regulate online casinos. The patents would give a state the authority to prosecute unlicensed sites in the federal court with patent infringement as successfully as the Home Gambling Network.