Planet Bingo Wins $2.99 million from Video King in Nebraska Lawsuit

The Nebraska Supreme Court granted Planet Bingo $2.99 million in a verdict for its lawsuit against Video King, which began in 2011.

Planed Bingo Sued Video King for Breaching Contract Agreement

On August 13, Planet Bingo, a California-based developer of gaming software and proprietary gaming tables, has reached a million-dollar verdict against another gaming company. Video King, another gaming company, reportedly breached the contract it established with Planet Bingo and its sister company, Melange Computer Services.

A jury previously concluded that Video King had violated the agreements and reverse engineered EPIC, which was developed by Melange. The jury upheld the financial claim, awarding Planet Bingo $2.99 million in damages. Video King then appealed to the Nebraska Supreme Court. The Supreme Court this week let stand the verdict in favor of Planet Bingo.

Video King Infringed Planet Bingo’s Intellectual Property

Video King developed its OMNI Bingo Hall Management System, which was reportedly almost a direct copy of EPIC. Planet Bingo Vice-President Operations David Forman stated that the company is protecting its intellectual property and added that this is critical for the growth and the success of the business. He said that he is pleased that Douglas County’s jury recognized the importance of the company’s innovation and held Video King responsible for violating its agreement with Planet Bingo and infringing its intellectual property.

The litigation’s history between Planet Bingo and Video King spans over three courts and began in 2011. The plaintiff first brought legal action against Video King in the Western District of Michigan, but the case was dismissed for lack of diversity jurisdiction. A week before that, Planet Bingo sued in Ingham County and filed against Video King in Douglas County. The action was dismissed again, this time for lack of personal jurisdiction. Neither of the two parties had business in the county at that time. However, the lawsuit was overturned by the Nebraska Supreme Court and remained pending.

In 2000, Video King entered a business collaboration with Melange, a Michigan software development company founded in 1989. In 2005, the two companies agreed to the use of EPIC on Video King’s bingo equipment. Subsequently, the two companies signed further amendments to the deal in 2007, 2008, 2009, 2011 and 2012. In 2006, Planet Bingo acquired Melange, and the two companies became one entity referred to as Planet Bingo. While the agreement between Melange and Video King remained intact, it still prohibited the use of the software beyond the scope of the original partnership.