Station Granted Judgment in Patent Lawsuit
LAS VEGAS -- (PRESS RELEASE) -- Station Casinos, Inc. (NYSE:STN) announced that on May 19, 2004, the United States District Court for the District of Nevada granted the Company's motion for summary judgment on Harrah's claims that the Company had infringed upon the "National Customer Recognition System and Methods" patents, U.S. Patents Nos. 5,761,647 and 6,183,362 (the "National Customer Recognition Patents"), held by Harrah's relating to its customer rewards and tracking program. In granting that motion, the Court ruled that the National Customer Recognition Patents are invalid as a matter of law due to indefiniteness and lack of enabling disclosure of the claimed subject matter. By separate order, the Court also found that certain other grounds on which the Company is seeking to invalidate the three patents that were the subject of the lawsuit, or render them unenforceable, involved issues of fact that the Company could pursue at trial. Copies of the above-referenced orders will be made available later today on the Company's website at www.stationcasinos.com.
On July 13, 2001, the Company and five of its major operating subsidiaries were named as defendants in a lawsuit brought by Harrah's Entertainment, Inc. and Harrah's Operating Company, Inc. in the United States District Court, District of Nevada (CV-S-01-0825-PMP-RJJ). The plaintiffs allege that the Company and its subsidiaries are liable for unspecified actual and punitive damages, and they seek injunctive and other relief, based on allegations that the Company's "Boarding Pass Rewards Program" infringes on various patents held by Harrah's.
The Court's order granting summary judgment resolves in the Company's favor substantially all of the significant issues in the lawsuit brought by Harrah's against the Company. The only remaining patent infringement claim relates to U.S. Patent No. 6,003,013 (the "'013 Patent") held by Harrah's, which involves the activation of physical instrumentalities (e.g., a telephone or lockable cabinet) through the use of a customer reward card. The Company has additional motions pending with respect to that remaining claim which, if granted, would render the '013 Patent also invalid or unenforceable.
While Harrah's has further rights to appeal the Court's decision, and while no assurances can be made with respect to any litigation, the Company continues to believe that Harrah's claims are without merit and does not expect that the lawsuit will have a material adverse effect on its financial position or results of operations.
