NEWS
IDEA files
files under
under
IDEA
Chapter
11
Chapter 11
pending the
the outcome
outcome of
of the
the suit
suit ships
ships as
as Banner
Banner Specialty,
Specialty, Empire,
Empire, and
and
pending
against IDEA.
IDEA
against
Beall said
said that
that Arachnid
Arachnid also
also has
has
Beall
filed suits
suits against
against two
two distributors
distributors of
of
filed
Industrial Design
Design Electronic
Electronic Associ-
Associ- IDEA's dart games. " No one can really
Industrial
IDEA's
dart
games.
"No
one
can
really
Inc., (IDEA),
(IDEA), has
has filed
filed for
for reorga-
reorga- understand that I am not the bad guy,"
ates, Inc.,
ates,
understand that I am not the bad guy,"
nization under
under Chapter
Chapter 11
11 of
of the
the Beall said. "We have spent a lot of
nization
Beall said. "We have spent a lot of
Federal
Bankruptcy
Act.
IDEAtookthe
Federal Bankruptcy Act. IDEA took the money
m oney placing
placing warning
warning ads
ads in
in the
the
action one
one week
week before
before a
a jury
jury was
was to
to
action
trade
magazines
warning
distributors
magazines warning distributors
decide the
the damages
damages IDEA
IDEA would
would pay
pay trade
decide
and operators
operators that
that they
they could
could be
be
and
for infringing
infringing the
the patent
patent on
on Arachnid,
Arachnid,
for
liable if if IDEA
IDEA was
was found
found guilty
guilty of
of
liable
Inc.:s electronic
electronic dart
dart games.
games.
Inc.,'s
patent infringement,
infringement which
which has
has hap-
hap-
patent
IDEA was
was convicted
convicted of
of patent
patent pened. Some distributors claim that
IDEA
infringement
in
late
1985,
and
the
jury pened. Some distributors claim that
infringement in late 1985, and the jury
IDEA said
said it it would
would indemnify
indemnify them,
them. but
but
was to
to fix
fix damages
damages February
February 10.
10. IDEA
was
now they
they have
have filed
filed bankruptcy,
bankruptcy, so
so the
the
now
Arachnid filed
filed suit
suit against
against IDEA
IDEA in
in distributo rs have no one to indemnify
Arachnid
distributors
have
no
one
to
indemnify
September 1982
1982 for
for patent
patent infringe-
infringe-
September
them.
m." "
the
ment unfair
unfair competition,
competition, and
and mis-
mis-
ment,
Arachnid originally
o riginally contracted
contracted
Arachnid
appropriation of
of trade
trade secrets.
secrets.
appropriation
with IDEA,
IDEA which
which also
also is
is a
a consulting
consulting
with
IDEA was
was found
found guilty
guilty of
of patent
patent and designing firm, to work on the
IDEA
and
designing
firm,
to
work
on the
infringement illegal
illegal use
use of
of trade
trade
infringement,
electronics of
of Arachnid's
Arachnid's 5000-series
5000-series
electronics
secrets, and
and willfulness.
willfulness. The
The trial
trial jury's
jury's electronic dart game.
secrets,
electronic dart game.
verdict that
that the
the infringement
infringement was
was
verdict
"willful and
and wanton,"
wanton," however,
however, was
was
"willful
Bally leaves
overturned.
U.S.
District
Judge
Barbara
overturned. U.S. District Judge Barbara Bally leaves
distributing
Crabb ruled
ruled that
that the
the jury
jury was
was impro-
impro- distributing
Crabb
perly
instructed
on
the
law
regarding
perly instructed on the law regarding
willful infringement
infringement and
and that
that IDEA's
IDEA's
Bally Corporation
Corporation has
has announced
announced
willful
Bally
"conduct
was
a
good-faith
attempt
to
that
as
of
March
31
it
officially
will be
be
that
as
of
March
31
it
officially
will
"conduct was a good-faith attempt to
avoid copying
copying the
the only
only patentable
patentable out
out of
of the
the distributing
distributing business.
business. Besides
Besides
avoid
elements of
of [Arachnid's]
[Arachnid's] game
game follow-
follow- distributing,
distributing, Bally's
Baily's coin-op
coin-op division
division
elements
ing
the
advice
of
their
patent
counsel.
"
includes
Baily's
chain
of
Aladdin's
ing the advice of their patent counsel." includes Bally's chain of Aladdin's
Though IDEA
IDEA was
was found
found not
not to
to Castles
arcades, Midway
Midway Manufactur-
Manufactur-
Castles arcades,
Though
have been
been "willful
"willful and
and wanton,"
wanton," the
the ing,
ing, and
and Bally
Bally Sente.
Sente.
have
conviction on
on patent
patent infringement
infringement was
was
Maurice Fercher,
Fercher, president
president of
of the
the
conviction
Maurice
not overturned.
overturned.
coin-op
division,
said
of
the
move,
not
coin-op division, said of the move,
of IDEA's
IDEA's filing
filing under
under the
the "There
Because of
"There are
are plenty
plenty of
of strong
strong indepen-
indepen-
Because
bankruptcy code,
code, the
the setting
setting of
of dam-
dam- dent
dent distributors
distributors that
that do
do a
a great
great job.
job.
bankruptcy
ages
in
the
case
has
been
postponed.
We
don't
need
to
be
in
distributing
to
ages in the case has been postponed. We don't need to be in distributing to
According to
to Paul
Paul Beall,
Bea!L Arachnid's
Arachnid's make
make Aladdin's
Aladdin's Castles,
Castles, Midway,
Midway, and
and
According
president "As
"As soon
soon as
as they
they filed
filed for
for Sente
Sente successful."
successful. "
president,
Chapter
11
,
the
company
is
protected
Ferchen said
said reaction
reaction has
has been
been
Chapter 11, the company is protected
Ferchen
by the
the bankruptcy
bankruptcy court.
court. Nothing
Nothing has
has favorable
favorable to
to the
the company's
company's decision.
decision.
by
really changed
changed except
except the
the arena;
arena; now
now "I
" I think
think everyone
everyone understands
understands our
our
really
it's in
in bankruptcy
bankruptcy court
court instead
instead of
of situation
situation and
and that
that we
we are
are trying
trying to
to do
do
it's
what
is
best.
"
federal
court."
federal court."
what is best."
Arachnid filed
filed in
in summer
summer 1984
1984 a
a
Baily's expansion
expansion into
into distributing
distributing
Arachnid
Bally's
similar suit
suit against
against Nomac,
Nomac, Ltd.,
Ltd. , the
the ended
ended with
with the
the purchase
purchase of
of Banner
Banner
similar
exclusive distributor
distributor of
of IDEA
IDEA before
before Specialty
Specialty offices
offices early
early in
in 1984.
1984. Bally
Bally
exclusive
developing
its
own
electronic
dart
had
11
distributing
offices
at
one
time,
developing its own electronic dart had 11 distributing offices at one time,
game. That
That case
case has
has been
been delayed
delayed having
having purchased
purchased such
such distributor-
distributor-
game.
.
•
6
8
Advance Automatic.
Automatic.
Advance
Bally
began
its trimming
trimming of
of dis-
dis-
Bally began its
tributorships when
when it it closed
closed offices
offices in
in
tributorships
Green Bay,
Bay, Wis.,
Wis., Detroit,
Detroit and
and St.
St. Louis
Louis
Green
before the
the latest
latest announcement.
announcement.
before
Ferchen said
said Bally
Bally is
is trying
trying to
to sell
sell its
its
Ferchen
other offices,
offices, and
and negotiations
negotiations on
on all
all
other
offices are
are either
either in
in progress
progress or
or com-
com-
offices
pleted.
pleted.
Dave Gilfor
Gilfor and
and Paul
Paul Russell
Russell of
of
Dave
Active Amusements
Amusements in
in Philadelphia
Philadelphia
Active
are expected
expected to
to acquire
acquire Bally
Bally
are
Banner's Philadelphia
Philadelphia office.
office. "We
" We will
will
Banner's
merge into
into one
one company,"
company," Gilfor
Gilfor
merge
said. "Our
" Our company
c ompany has
has not
not been
been
said.
active
in
vending,
and
it
will
be
a
tre-
active in vending, and it will be a tre-
mendous thrust
thrust for
for us
us with
with Bally
Bally
mendous
Banner's vending
vending business.
business. We
We will
will
Banner's
also
expand
our
product
line
and
take
also expand our product line and take
over Bally's
Baily's existing
existing customers."
customers."
over
Steve Koenigsberg
Koenigsberg of
of State
State Sales
Sales is
is
Steve
buying
Bally
Banner's
Baltimo
re
office
buying Bally Banner's Baltimore office
for much
much the
the same
same reason.
reason. "With
" With the
the
for
purchase we
we will
will take
take a
a company
company
purchase
strong in
in vending
vending and
and one
one strong
strong in
in
strong
music
and
games
and
merge
them
music and games and merge them
into one,
one, giving
giving our
our customers
customers the
the best
best
into
of both.
both."
"
of
Koenigsberg said
said he
he will
will retain
retain all
all
Koenigsberg
employees of
of Bally
Bally Banner
Banner Baltimore.
Baltimore.
employees
"The real
real strength
strength is is both
b oth organizations
organizations
"The
have great
great people,"
people," he
he said,
said, "and
" and
have
that's
what
is
going
to
make
this
a
that's what is going to make this a
great
company."
great company."
Although the
the company
company is
is operating
operating
Although
out
of
two
facilities,
Koenigsberg
said
out of two facilities, Koenigsberg said
he is
is in
in the
the process
process of
of bringing
bringing both
both
he
under one
one roof.
roof.
under
American
Vending of
of Wood
Wood Dale,
Dale,
American Vending
IIL
is
buying
the
Bally
Midwest
office
in
Ill., is buying the Bally Midwest office in
Chicago.
American
Vending
is
an
Chicago. American Vending is an
established vending
vending company
c ompany that
that
established
recently has
has expanded
expanded into
into music
music and
and
recently
games.
games.
Employees of
of Bally
Bally Banner's
Banner's Pitts-
Pitts-
Employees
burgh office
office bought
bought it it collectively.
collectively.
burgh
Ferchen said
said negotiations
negotiations for
for the
the sale
sale
Ferchen
of
the
offices
in
Boston,
San
Francisco,
of the offices in Boston, San Francisco,
and Phoenix
Phoenix are
are being
being conducted.
conducted.
and
PL.\ Y METER,
METER. March
Morch 1,
1, 1986
1966
PLAY