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Tuesday, November 22, 2011

Georgia Lottery prevails in trademark case

By: Dave Williams, Staff Writer
Source: http://www.bizjournals.com


The Georgia Supreme Court Monday narrowly ruled in favor of the Georgia Lottery Corp.    in a trademark infringement case.

In a 4-3 decision, the justices declared that, as a creation of state government, the lottery is entitled to “sovereign immunity” from lawsuits.

In addition, the court ruled that the plaintiffs had not made sufficient use of their trademark on a game called “MONEYBAG$” to make a claim against the lottery for running a game of the same name.

The case stems from 1995, when George Kyle registered a trademark for a game he created consisting of a velvet pouch contained wooden tiles.

However, his efforts to market the game fell flat, and he sold fewer than 50 during the next decade.

Meanwhile, the Georgia Lottery began running a scratch-off game called “MONEY BAGS” after the company that creates games for state lotteries – Scientific Games International Inc. ­– received permission from Kyle for one-time use of the trademark.

After the lottery ran the game twice, in 2005 and 2007, Kyle and business partner Frank Mankovitch sued for trademark infringement.

The Supreme Court’s ruling upheld a previous decision by the state Court of Appeals.

Because the Georgia Lottery Corp. is accountable to the General Assembly and the public through audits and reports, it is an “instrumentality” of the state and therefore, entitled to sovereign immunity, Justice Harold Melton wrote for the majority.

“The purpose, function and management of [the lottery] are indelibly intertwined with the state,” Melton wrote. ...

Source: http://www.bizjournals.com/atlanta/news/2011/11/21/georgia-lottery-prevails-in-trademark.html

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