Japan’s Universal Entertainment Corporation is taking founder and former Chairman Kazuo Okada’s wholly-owned Aruze Gaming America Inc (AGA) to Tokyo District Court, claiming the partner company has continually violated a patent licensing agreement by failing to pay fees.
Universal announced the court proceedings on Friday, adding that it had filed a lawsuit on 28 August 2017 after a Special Investigation Committee that was looking into three counts of suspected fraud by Mr Okada stumbled upon the case.
AGA is accused of continuing to violate an agreement it executed with Universal to pay patent licensing fees for company-held patents by “not paying said fees whatsoever.”
“Although the company has continued to issue citations to AGA, due to the latter showing no indications that it will comply with those citations, the company has brought a legal action,” it said.
“In addition to the aforementioned violation of the agreement … the company has verified that AGA has continued to use company-held patents without permission and that there is an extremely high possibility that it is manufacturing and selling products using those patents.
“The company will proceed to examine legal action against this act by AGA of using company-held patents without permission, including demanding an injunction to stop said manufacture and sales activities by AGA.”
Universal is claiming damages of ¥100 million (US$893,000) from AGA.
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