IGT, Bally's in court battle over executive's defection

A defector from International Game Technology to rival Bally Gaming will get to keep his job, but he won't get to roam free through some of the world's most lucrative gaming markets.

District Judge Mark Gibbons ruled late Thursday that because of a non-competition agreement signed while he was sales manager with IGT, Mark Wiedemer will have to spend a year on restriction for jumping to the company's main competitor.

IGT attorney Cam Ferenbach had asked that Wiedemer be prevented from even working for Bally Gaming because of the agreement and claims he took IGT secrets with him, but the judge ruled that was too restrictive under the law.

Instead, the man who spent six years as sales manager for IGT will be restricted to selling gaming equipment in Central and South America and Asia until January 2000.

North America, the Caribbean and Europe, where Wiedemer had worked for IGT, are off limits, according to the injunction granted by Gibbons pending a full trial that is not yet set.

The two day court case seemed to go beyond the luring away of a high paid marketing executive by a rival company.

IGT seemed particularly miffed because court evidence showed Wiedemer actually accepted the Bally Gaming job in October but stayed on IGT's payroll until late November, purportedly to collect a $32,000 bonus.

Wiedemer testified he wouldn't have received the bonus had he let it be known he was jumping ship.

IGT also learned Wiedemer was using his IGT cellular telephone to keep in contact with his new employer during the last weeks he remained with his old company.

Attorney Peter Bernhard, who represents Bally's parent company Alliance Gaming, charged IGT's courtroom pursuit of Wiedemer actually was to send a message to other IGT executives who might be contemplating a change of employers.

Bernhard called the non-competition agreement a "ball-and-chain," but the judge decided that Wiedemer knew what he was doing when he signed it.

Bernhard suggested that if IGT wants to keep Wiedemer from being a competitive force for the next year, it should pay his salary and let him take the year off.

In his decision, Gibbons prohibited Wiedemer and Bally from benefiting from any "trade secrets" that were gleaned from IGT.

While at IGT, Wiedemer signed a confidentiality agreement that required him not to reveal IGT trade secrets about manufacturing techniques, processes, formulas, work in process or other information.

Bally Gaming is charged in the lawsuit with hiring Wiedemer "with the intent of using IGT's proprietary information and soliciting and obtaining orders from IGT customers."

For five years Wiedemer worked out of IGT's European offices. For the past year he worked in Las Vegas.

At a trial, monetary damages will sought for sales made by Las Vegas-based Bally Gaming to IGT customers by Wiedemer.

Statements in court Thursday indicated Reno-based IGT also will attempt to win the return of the $32,000 bonus given to Wiedemer.

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