GC2 Inc. v. Int'l Game Tech., IGT

391 F. Supp. 3d 828
CourtDistrict Court, E.D. Illinois
DecidedJuly 15, 2019
DocketCase No. 16 C 8794
StatusPublished
Cited by9 cases

This text of 391 F. Supp. 3d 828 (GC2 Inc. v. Int'l Game Tech., IGT) is published on Counsel Stack Legal Research, covering District Court, E.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GC2 Inc. v. Int'l Game Tech., IGT, 391 F. Supp. 3d 828 (illinoised 2019).

Opinion

MATTHEW F. KENNELLY, District Judge:

GC2 Inc. sued International Game Technology, *836IGT,1 Doubledown Interactive LLC, and Masque Publishing, Inc. alleging copyright infringement and violations of the Digital Millennium Copyright Act (DMCA). GC2's claims went to trial in January 2019. The jury found unanimously in GC2's favor. Specifically, the jury found that each of the defendants had both directly and vicariously violated GC2's copyrights, that IGT Holding, IGT NV, and Doubledown had also contributorily infringed, and that IGT Holding, IGT NV, and Doubledown had committed 696 separate violations of the DMCA.

The defendants have filed several post-trial motions. They ask for partial judgment as a matter of law on the DMCA claims on the basis that evidence did not support the jury's verdict; for a new trial, remittitur, and/or to alter the verdict; and for attorney's fees under the Copyright Act. GC2, the plaintiff, has moved for a permanent injunction, supplemental damages, prejudgment interest, attorney's fees, and costs. For the reasons below, the Court (1) denies the defendants' motion for partial judgment as a matter of law; (2) denies the defendants' motion for a new trial, remittitur, and/or to alter the judgment; (3) grants GC2's motion for a permanent injunction; (4) denies GC2's motion for supplemental damages; (5) grants GC2's motion for prejudgment interest in part; (6) denies GC2's motion for attorney's fees; and (7) denies the defendants' motion for attorney's fees. The Court will rule separately on GC2's bill of costs.

Background

There are four defendants in this case: IGT Holding, IGT NV, Doubledown, and Masque. IGT Holding owns IGT NV, a Nevada corporation. IGT NV produces and sells land-based games played in physical casinos. Until June 2018, IGT Holding also owned Doubledown.2 Doubledown develops and distributes digital slot machine games. Masque sells digital casino games and licensed art from IGT Holding.

A. Infringing games and artwork

GC2 developed artwork, images, and thematic elements for games that are primarily displayed on physical wagering machines such as slot machines. The company has created artwork and videos for a series of wagering games, including those at issue in this suit: Coyote Moon, Pharaoh's Fortune, Lucky Lion Fish, Festival Fantastico, Kingpin Bowling, and Wild Goose Chase. GC2 licensed some of its artwork to IGT NV beginning in 2003 for use in the development of these physical slot machine games. Although these games were successfully developed and deployed to casinos, several disputes arose between the companies, leading to a 2007 contract-styled as the seventh amendment to the parties' original agreement-intended to wind up their relationship. In this agreement, IGT NV retained a perpetual license to the GC2 artwork used for the physical land-based machines the companies jointly developed. But the agreement did not give up all the rights to the art used in the disputed games; it expressly reserved GC2's rights to its artwork for use in, among other things, development of internet gaming programs.

IGT Holding eventually entered the online gaming industry, developing and selling digital games through its then-subsidiary *837Doubledown. Specifically, Doubledown operated Doubledown Casino, which offered online games to consumers on its website and through third-party websites like Facebook. Among these, GC2 alleged in this suit, were online digital versions of the six disputed games. IGT Holding also licensed digital games containing GC2's artwork to Masque, a third-party publisher. Masque's customers were able to purchase the disputed games for digital download or in CD/DVD format.

GC2 alleged that the defendants collectively infringed its copyrights by developing and distributing the disputed games. It also alleged that IGT Holding, IGT NV, and Doubledown violated the DMCA, which, among other things, makes it unlawful to manipulate copyright management information-i.e., the material typically displayed on or near copyrighted materials identifying their authors or owners. Specifically, GC2 alleges that the defendants removed or altered GC2's copyright management information from the artwork in question during the process of developing the disputed games and then distributed the artwork knowing that the information had been so removed or altered.

B. Procedural history

GC2 filed suit in September 2016. In addition to the claims that went to trial, the original complaint included claims under the Illinois Consumer Fraud and Deceptive Business Practices Act. The complaint originally named all of the current defendants as well as International Game Technology PLC, a European affiliate of IGT Holding; WD Encore Software, LLC, another distributor with a similar relationship to IGT as Masque; and several unidentified "Doe" defendants consisting of end-users of the products in question. The defendants first moved to dismiss for failure to state a claim in December 2016. The Court denied that motion, though it narrowed somewhat the scope of the DMCA count. See GC2 Inc. v. Int'l Game Tech. PLC (GC2 I ), 255 F. Supp. 3d 812, 822-23 (N.D. Ill. 2017).

One of the original defendants, IGT PLC, also moved to dismiss for lack of personal jurisdiction. The Court granted that motion, concluding that the company- organized under the laws of England and Wales-lacked sufficient contacts with the forum to permit personal jurisdiction. See GC2 Inc. v. Int'l Game Tech. PLC (GC2 II ), No. 16 C 8794, 2017 WL 2985741, at *10 (N.D. Ill. July 13, 2017). The Court also subsequently stayed GC2's claims against another defendant, WD Encore, when it filed for bankruptcy. See Order of Sept. 29, 2017, dkt. no. 168. Finally, the Court dismissed the counts against the Doe defendants without objection by GC2. See Order of Aug. 14, 2018, dkt. no. 279.

The remaining defendants moved for partial summary judgment after the close of discovery. On the copyright infringement claims, the defendants sought summary judgment that two games besides the six that eventually went to trial-Kitty Glitter and Maid of Money-did not infringe GC2's copyrights. They also sought summary judgment on GC2's claims based on the DMCA and Illinois consumer fraud statutes in their entirety. The Court granted the defendants' motion with respect to Kitty Glitter and Maid of Money and with respect to the Illinois statutory claim but denied the motion on the DMCA claim. See GC2 v. Int'l Game Tech. (GC2 III ), No. 16 C 8794, 2018 WL 5921315, at *8 (N.D. Ill. Nov. 12, 2018).

C. Jury verdict

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Bluebook (online)
391 F. Supp. 3d 828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gc2-inc-v-intl-game-tech-igt-illinoised-2019.