Court Grants Aristocrat Injunction In Dispute With Light & Wonder, Appeal On The Horizon

In the ongoing legal battle between Aristocrat Technologies and Light & Wonder, Aristocrat has — at least for now — achieved a victory. A Nevada court on Monday granted the company a preliminary injunction against Light & Wonder (formerly Scientific Games) in an ongoing intellectual property dispute.

The case centers around allegations of patent infringement and unfair competition, marking a notable conflict between two of the biggest names in the global gaming technology market. This decision, while not a final ruling, has temporarily restrained Light & Wonder from using certain technologies that Aristocrat claims to have developed and patented, specifically those linked to the Dragon Train game.

In response to the court’s decision, Light & Wonder has already begun preparing an appeal, signaling that this legal battle is far from over.

Aristocrat, an Australian-based gaming technology company, filed a lawsuit against Light & Wonder, alleging that the latter had infringed on its patents related to gaming systems and software. Aristocrat contended that Light & Wonder had unlawfully used its IP, particularly in areas concerning electronic gaming machines and digital platforms.

The dispute came to a head with both companies investing heavily in the booming digital gaming and online casino markets, seeking to gain an edge in the highly competitive industry. Aristocrat, which has a strong portfolio of patents covering various gaming technologies, argued that Light & Wonder had incorporated proprietary Aristocrat features and software into its own gaming products.

The lawsuit, similar to another against Light & Wonder by Evolution, followed months of negotiations and failed discussions between the two companies. Aristocrat ultimately sought legal recourse. The company has a history of aggressively defending its patents, having filed similar lawsuits in the past.

Preliminary injunction and its implications

The preliminary injunction forces Light & Wonder to stop using the disputed technologies while the case is being litigated. This decision came after the court found that Aristocrat had made a compelling case that Light & Wonder’s use of the technology could cause irreparable harm to Aristocrat’s business and market share.

A preliminary injunction is not a final ruling on the merits of the case. Instead, it’s intended to prevent further damage to Aristocrat’s interests while the legal proceedings are underway.

The injunction effectively bars Light & Wonder from selling, distributing, or using the gaming systems that allegedly infringe on Aristocrat’s patents. This temporary restriction could have a significant impact on Light & Wonder’s operations, as the company relies on these technologies to maintain its position in the market.

Moreover, it could delay product launches and disrupt existing business relationships with casinos and gaming operators who depend on Light & Wonder’s gaming offerings.

Appeal underway

Unsurprisingly, Light & Wonder has announced that it is preparing an appeal against the court’s decision. The company argues that it has not infringed on Aristocrat’s patents and that its gaming technologies are the result of independent innovation.

The appeal process could take months, if not longer, and will involve a detailed examination of the patents and technologies at the heart of the dispute. Light & Wonder’s ability to secure a favorable outcome will likely depend on whether it can convince the court that Aristocrat’s patents do not cover the specific features or systems it is using. If successful, Light & Wonder could have the injunction lifted, allowing it to resume business as usual while the broader case continues.

However, if Aristocrat’s preliminary injunction is upheld on appeal, it could force Light & Wonder to make substantial changes to its products or potentially negotiate a settlement with Aristocrat. A prolonged legal battle could also hurt Light & Wonder’s financial performance.

However, Light & Wonder noted that Dragon Train only comprised 5% of the more than $1.4 billion in pre-amortization revenue projections for next year.