Court Dismissal Favors Encore, Kentucky Downs
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Photo: Hodges Photography / Lou Hodges, Jr.
3/29/2014 - Palace Malice with Mike Smith aboard captures the New Orleans Handicap at Fair Grounds.
Another court decision went in favor of Kentucky Downs' new provider of historical racing games, Encore Racing Based Games, in litigation brought by RaceTech, the Franklin, Ky., track's former provider of the kiosk gaming machines.
The U.S. District Court for the Western District of Kentucky dismissed a trademark infringement case April 25 brought by the Oaklawn Jockey Club and various other racetracks against Encore Racing Based Games and Kentucky Downs. The suit involved Encore's historic horse race system and alleged that Encore had infringed upon the plaintiffs' trademarks by using the racetracks' names to identify the location where historic horse races had taken place.
Monday's court decision follows a Feb. 29 ruling that dismissed a patent infringement lawsuit brought by RaceTech against Encore. RaceTech, the first company to offer historical race wagering through its Instant Racing Games, and its Instant Racing games tote provider AmTote also have breach of contract/misappropriation of trade secrets cases pending against Kentucky Downs and Encore.
The dismissal this week found no evidence that Encore was violating trademark rules. The court found that Encore is "fully within their rights to describe where an event took place in their wagering system without implying the owners of the racetrack are sponsoring the game ... [Encore is] protected by the fair use defense when describing where an event took place, even when the location described is most commonly conveyed using a registered trademark ... Plaintiffs have failed to allege plausible facts which would justify this matter proceeding beyond this motion to dismiss ... Therefore, the Court grants Defendants' motion and dismisses Plaintiffs' claims in their entirety."
Encore said Monday's ruling will help the company move forward.
"We are grateful that the court once again dismissed a lawsuit that would have severely limited growth in the historic horse racing market," said Encore president Jeremy Stein in a statement. "Encore is committed to the long-term health of the racing and breeding industries, and we are proud that the Encore system and games continue to generate record handle numbers and significant revenue for the horse industry in Kentucky and Wyoming. Monday's ruling will allow us to continue growing while looking to bring historic horse racing revenue to new racing jurisdictions."