Aristocrat Secures Preliminary Injunction Against Light & Wonder Over Game Infringement

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Published: 27 September 2024

2 min

In a landmark case for the online casino industry, Aristocrat’s legal battle against Light & Wonder over alleged intellectual property infringement took a significant turn when a court granted a preliminary injunction.

Key Takeaways

Aristocrat wins a preliminary injunction against Light & Wonder over intellectual property infringement related to its Dragon Link game.
Light & Wonder is prohibited from selling, leasing, or commercialising Dragon Train.
The court acknowledged misuse of Aristocrat’s trade secrets by Light & Wonder.
Light & Wonder plans to appeal the decision despite an 18.4% drop on the ASX.

The Core of the Dispute

Aristocrat alleges that Dragon Train didn’t just draw inspiration from its Dragon Link but outright copied it. The plot thickens with the involvement of a former Aristocrat game designer, now at Light & Wonder, who allegedly used trade secrets to develop the rival game. The court sided with Aristocrat for now, stating that Light & Wonder misused proprietary information, bypassing the time and effort needed for original game development.

Aristocrat’s Chief Product Officer, Matthew Primmer, praised the decision as a win for innovation and a firm stand against intellectual property theft. Light & Wonder, however, isn’t backing down. It plans to appeal and stands by the creativity of its design team.

Impact Beyond the Courtroom

This ruling has immediate consequences. Light & Wonder’s stock took an 18.4% hit on the Australian market following the decision. Still, the company remains optimistic, focusing on the upcoming Global Gaming Expo to showcase new games, while projecting a strong financial recovery with an eye on a $1.4 billion consolidated AEBITDA by 2025.

The broader industry is watching closely. Aristocrat’s victory sends a clear message: protecting intellectual property in the competitive world of casino games is crucial. But this battle is far from over. As Light & Wonder gears up for its appeal and prepares to flex its creative muscles at the Global Gaming Expo, the stakes in this high-profile feud continue to rise.

For now, the courts have dealt a blow, but whether it’s a knock-out punch remains to be seen.