Appeals Court Upholds Decision Favoring Exacta Systems

An appeals court upheld a decision by a United States District Court that found no patent infringement by the historic racing company Exacta Systems.

In an entry of judgment without opinion, the United States Court of Appeals for the Federal Circuit ruled Feb. 13 in favor of Exacta Systems in a patent infringement lawsuit originally brought by RaceTech. RaceTech filed the lawsuit in 2015, alleging that Exacta Systems had violated three separate patents relating to RaceTech's Instant Racing product.  

RaceTech, known for its Instant Racing historic gaming machines, filed the lawsuit in 2015 against Exacta Systems shortly after the latter company reached an agreement to be the historic racing provider at Kentucky Downs. In July 2016, the Stronach Group's AmTote purchased RaceTech, which had been controlled by Oaklawn Park owner the Cella family. The new owner of RaceTech opted to continue the litigation.

The Court of Appeals unanimously upheld a decision of the United States District Court for the Western District of Kentucky, which dismissed all three RaceTech patent claims in an opinion issued in 2016. 

Attorney Richard Brophy, who handled the appeal for AmTote, said he could not comment on any plans to further appeal the case. Exacta Systems said that barring a successful appeal to the United States Supreme Court, the Feb. 13 decision will put an end to all patent related litigation between the parties. 

"We are extremely grateful that the Court of Appeals unanimously upheld the decision of the U.S. District Court to dismiss all of the patent infringement claims brought by Amtote and RaceTech," said Exacta Systems president Jeremy Stein. "Exacta remains focused on creating and expanding our innovative historic horse racing system and games while continuing to fight and win the numerous frivolous lawsuits filed by our competitors." 
 

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