After its success against Bodog, it looks like
1st Technology is continuing its quest to sue online casinos over some obscure patent matter.
I am not going to comment on the validity of the patent or any potential infringements, as I am not especially familiar with the case.
That being said, I will concede that from a purely strategic perspective, their plan is very sound. By concentrating on mainly offshore casinos, 1st Technology is choosing operations with management teams that may have reasons not to visit America. This adds a level of complexity to a defense which the outdated American patent system already makes pretty difficult.
As somebody who has a bit of experience in American patent litigation
(someday, I will tell the whole story), I can tell you that it is a
system set up very much in favor of the patent-holders, and defending a
suit can get very expensive in a hurry.
The system is designed in a manner that the patent
trolls lawyers can simply use photocopiers and fill-in-the-blank forms to generate mounds of document requests and court filings, while the defendant needs to spend many thousands of dollars simply trying to keep up, let alone mount a strong defense.
A company can easily get wrongfully included in a patent suit, and still have to spend $100K or more just to get their name taken off the suit - and there is zero hope for a return of court costs. Something as small as this could easily bankrupt a small business, and exposes a serious flaw in the American patent law system - and nobody seems interested in fixing anything because the lawyers love it so much.
One of the curious aspects of the patent system is that patents are only applicable in the countries in which they are filed. However, as the Bodog situation proved, that doesn't mean that foreign companies can simply ignore any lawsuits and be damned with the results.
As Bodog learned when it lost its domain to 1st Technology, there are many ways in which compensation can be applied. Furthermore, many countries have treaties where legal judgments entered in one country can be enforced in others.
So, no matter where you are, you still need to file a defense, no matter how mush of an expensive nuisance it is.
All of that being said, I'd be very interested to see what happens if and when some of those online operations have settlements levied against them. They will not be pleased.