GGRAsia – Aristocrat gets preliminary injunction vs L&W Dragon Train

Aristocrat gets preliminary injunction vs L&W Dragon Train

Sep 24, 2024 Newsdesk Industry Talk, Latest News, Top of the deck

Slot machine specialist Aristocrat Technologies Inc says it has been granted a preliminary injunction by a court in the United States, against market rival Light & Wonder Inc (L&W). Aristocrat filed a lawsuit in March against Light & Wonder involving Dragon-themed titles offered by the two companies.

It concerned claimed infringement of Aristocrat’s intellectual property, including alleged “misappropriation of Aristocrat’s trade secrets” in connection with Light & Wonder’s “Dragon Train” game, said Aristocrat Technologies, part of Australia-listed Aristocrat Leisure Ltd, in a Monday statement.

It added that Judge Gloria M. Navarro in the U.S. District Court in Nevada had issued that day a decision granting Aristocrat’s motion for the preliminary injunction on its trade secret claims against Light & Wonder.

Aristocrat stated that the court “enjoined” Light & Wonder from “any continued or planned sale, leasing, or other commercialisation of Dragon Train.”

Light & Wonder issued its own statement on Monday saying it “respectfully disagreed” with the judge’s decision, and would contest it. The firm launched its Dragon Train title in Australia last year, and in the U.S. market in early March.

Nonetheless, Aristocrat stated that the court’s decision found that the company was “extremely likely to succeed in demonstrating Light & Wonder misappropriated Aristocrat’s trade secrets in [Light & Wonder’s] development of Dragon Train”.

Aristocrat further noted: “The court recognised that, by misappropriating trade secrets relating to Aristocrat’s market-leading Dragon Link and Lightning Link games, Light & Wonder was” according to the court “able to develop Dragon Train without investing the equivalent time and money”.

Aristocrat added that in granting the preliminary injunction, the court noted “the public interest in protecting trade secrets and preventing competitors from receiving an unfair advantage”.

Matthew Primmer, the Aristocrat group’s chief product officer, was cited as saying in the group’s Monday statement: “We are extremely pleased with the court’s decision.”

He added: “This ruling underscores the value of our intellectual property and reaffirms our commitment to protecting the integrity of our business. We will continue to innovate and invest in cutting-edge solutions, knowing that the law protects our creative efforts.”

The update said Aristocrat would “continue pursuing its case against Light & Wonder in the United States, and will seek all appropriate remedies to address the harm caused by Light & Wonder’s actions.”

The statement additionally mentioned: “Separately, earlier this year the Federal Court of Australia granted Aristocrat pre-suit discovery against Light & Wonder and Aristocrat continues to consider its legal options in Australia.”

Light & Wonder’s press release on the Monday ruling of the U.S. court stated: “We respectfully disagree with the judge’s decision and will promptly file an appeal.”

“We will continue to vigorously defend against Aristocrat’s claims, including presenting our defences to a jury at a trial,” added Light & Wonder.

It stated in the same update: “Light & Wonder reaffirms its 2025 US$1.4 billion targeted consolidated AEBITDA.” That was a reference to adjusted earnings before interest, taxation, depreciation and amortisation. The firm said its “pre-ruling estimate” for 2025 consolidated AEBITDA for Dragon Train “was less than 5 percent of the US$1.4 billion” target.

Matt Wilson, president and chief executive of Light & Wonder, was cited as saying: “We expect our strong growth trajectory to continue, notwithstanding this decision.”