Aristocrat Leisure and Light & Wonder have resolved their high-profile intellectual property litigation with a $190 million settlement and the withdrawal of disputed games from the market.
- Light & Wonder to pay USD 127.5 million compensation
- Withdrawal and destruction of disputed games Dragon Train and Jewel of the Dragon
- Acknowledgement of use of Aristocrat’s proprietary math in game development
- Confidential procedures established for future IP compliance
- Mutual dismissal of all litigation claims in Australia and the US
Resolution of a High-Stakes IP Battle
In a significant development for the gaming industry, Aristocrat Leisure Limited and Light & Wonder have announced a settlement that brings an end to their protracted intellectual property dispute. The litigation, which spanned Australia and the United States, centered on allegations that Light & Wonder’s games Dragon Train and Jewel of the Dragon were developed using Aristocrat’s proprietary trade secrets and copyrighted material.
The settlement sees Light & Wonder agreeing to pay approximately AUD 190 million (USD 127.5 million) in compensation to Aristocrat. Beyond the financial terms, Light & Wonder has committed to permanently cease the commercialization of the contested games and to make best efforts to remove existing installations globally. This move underscores the seriousness with which both parties regard the protection of intellectual property in the competitive gaming sector.
Acknowledging the Use of Proprietary Math
Central to the dispute was the use of Aristocrat’s complex mathematical models, which underpin the mechanics and fairness of slot and digital games. Light & Wonder has acknowledged that certain Aristocrat math information was indeed used in the development of the two games in question. As part of the settlement, Light & Wonder will destroy all documents reflecting this proprietary information and has agreed not to use it further.
Both companies have also agreed on confidential procedures to monitor and resolve any future concerns related to the use of Aristocrat’s math in Light & Wonder’s existing and in-development hold and spin games. This proactive approach aims to prevent similar issues from arising and to maintain a level playing field in game innovation.
Statements from Leadership
Aristocrat’s CEO Trevor Croker emphasised the importance of defending intellectual property rights, highlighting the company’s commitment to protecting its creative and technical investments. He noted that the court had previously recognised Light & Wonder’s use of Aristocrat’s trade secrets without equivalent investment, reinforcing the legitimacy of Aristocrat’s claims.
Light & Wonder’s CEO Matt Wilson expressed relief at resolving the dispute and reiterated the company’s dedication to ethical business practices. He attributed the issue to a former employee’s misconduct and outlined steps taken to strengthen internal controls, ensuring respect for competitors’ intellectual property going forward.
Implications for the Gaming Industry
This settlement highlights the critical role of intellectual property protection in the gaming industry, where innovation is tightly guarded and fiercely contested. The resolution may set a precedent for how companies handle IP disputes, particularly concerning the use of proprietary algorithms and game mechanics. Investors and industry watchers will be keen to see how this influences future collaborations, competition, and regulatory scrutiny.
Bottom Line?
The settlement closes a costly chapter but raises fresh questions about IP safeguards in gaming’s fast-evolving landscape.
Questions in the middle?
- How will the removal of Dragon Train and Jewel of the Dragon affect Light & Wonder’s revenue and market share?
- What specific measures has Light & Wonder implemented to prevent future IP breaches?
- Could this settlement prompt tighter industry-wide regulations on proprietary game math and design?