Light & Wonder has agreed to pay a $127.5 million compensation settlement to rival gaming giant Aristocrat over ‘claims for misappropriation and infringement of its intellectual property’ linked to L&W’s Dragon Train game.
The companies detailed the settlement amount in a joint statement released by the companies on January 11th.
The settlement is confidential, but also includes an acknowledgement by L&W that ‘certain Aristocrat math information was used in connection with the development of both Dragon Train and Jewel of the Dragon’.
Light & Wonder has also agreed ‘not to make any further use of the Aristocrat math information and copyright works at issue in the litigation, and to permanently destroy all documents reflecting that information’.
Furthermore, the two parties agreed ‘to confidential procedures for identifying and resolving any issues concerning the use of Aristocrat math in connection with certain existing Light & Wonder hold and spin games and certain hold and spin games now in development’. These include ‘games for which Light & Wonder was ordered to produce math models to Aristocrat in the United States litigation’.
Following the settlement, Aristocrat’s claims against L&W in both Australian and the US ‘will be dismissed’.
The settlement not only lays to rest the long-standing issue between the rival gaming groups, but also cements an agreement for each company to protect their ‘valuable, proprietary assets’. The groups note that ‘respecting intellectual property rights […] is critical to ensure fair competition among all participants in the gaming industry’.
Speaking of the settlement, Aristocrat CEO Trevor Croker noted “We welcome this positive outcome, which includes significant financial compensation and follows the decisive action we took to ensure the preservation of Aristocrat’s valuable intellectual property assets”.
Matt Wilson, CEO of Light & Wonder shed some light on the background of the issue, noting “This matter arose when a former employee inappropriately used certain Aristocrat math without our knowledge and in direct violation of our policies. Upon discovery, we took immediate action and have since implemented strengthened processes aimed at preventing similar issues in the future. This settlement protects the interests of our customers, employees, and shareholders, and allows us to continue our focus on developing and delivering the market-leading content our customers expect”.
