Aristocrat Leisure, the leading producer of poker machines in Australia, is currently engaged in a legal dispute with its main competitor, Light & Wonder (L&W), over claims that L&W unlawfully used confidential trade secrets to copy one of Aristocrat’s well-known games called Dragon Link, as reported by the Australian Financial Review (AFR).
The legal action:
An influential gaming tycoon, listed on the Australian Stock Exchange (ASX), has initiated legal proceedings against Light & Wonder, alleging that the company has been involved in a deliberate effort to copy the described game and puzzle customers. Furthermore, it alleges that former employees of Aristocrat, who are Mahadev Book currently working for Light & Wonder, unlawfully misappropriated proprietary information, thus violating Nevada laws.
Light & Wonder, managed by former Aristocrat executives, plans to challenge a lawsuit that it considers to be unfounded over the design of its game called Dragon Train. The game was launched last year and is on track to become its best-selling game.
The representative for Light & Wonder stated that the actions taken against them are completely unfounded, and they would strongly defend themselves by requesting the dismissal of the complaint. According to AFR, Dragon Train is a new game from Light & Wonder that is part of a collection of various games. These games are known for their competitive nature and innovative features, which have been well-received by our consumers.
The defense is expected to be submitted by the end of this week, according to reports.
Accusations:
Aristocrat alleges in legal filings in Nevada that Light & Wonder obtained confidential information about the mechanics and mathematical algorithms of Dragon Link, which Aristocrat asserts has almost similar bonus features, payout tables, symbols, and game regulations.
The court documents assert that L&W has intentionally and lucratively utilized the Aristocrat trade dress in a manner that infringes upon it. This is done with the intention of attracting players, fully aware that these players will mistakenly believe that the games are connected to, or endorsed by, Aristocrat.
Furthermore, the court filings assert that the game in question, developed by Light & Wonder, was produced by Emma Charles, a game designer who previously held a position at Aristocrat and was directly involved in the creation of Dragon Link. Charles resigned from Aristocrat in 2017. She, along with Lloyd Sefton, another former employee of Aristocrat who left in 2016, supplied L&W with all the requisite data to create their most recent game.
The court documents allege that L&W has unlawfully obtained one or more of Aristocrat’s trade secrets, specifically Betinexchange related to the Dragon Link and Lightning Link games. L&W was aware or had reason to believe that the information was obtained through improper means from individuals, including Ms. Charles and/or Mr. Sefton. Based on available information, it is believed that at the time of use, L&W was aware or had sufficient reason to be aware that it had obtained the information from individuals, including Ms. Charles and/or Mr. Sefton.
Interconnection among businesses:
Aristocrat, founded by Len Ainsworth, is a global frontrunner in the manufacturing of slot machines and holds a market capitalization of $30 billion. Nevertheless, its market share, valued at $13.6 billion, has faced significant competition from L&W, led by former Aristocrat CEO Jamie Odell and former Americas chairman and managing director Matt Wilson.
Furthermore, the remaining executives and directors of L&W who have prior experience at the aforesaid company are Ted Hase, the senior vice president of game design, and Toni Korsanos, the CEO of gaming Siobhan Lane. Furthermore, the shares of L&W, a company that is also listed on the Nasdaq, have experienced a significant increase of 67% since its official inclusion in the ASX in 2023. Macquarie’s analysis, issued on March 12, characterized the two corporations as a “duopoly” within the industry’s “oligopoly”.
In essence, Aristocrat is pursuing legal action to promptly get the disclosure of Light & Wonder documents, which it believes would reveal the functionality, software, and origins of the Dragon Train game. Furthermore, the company asserts that L&W’s conduct has already exerted influence on both market share and income.
Regarding this issue, the company made a statement as reported by AFR: “Aristocrat has experienced, and will continue to experience, financial and market share losses unless immediate legal action is taken to prevent it.” diminished positive perception and corporate image … The wasted time and resources spent in attempting to halt L&W’s obvious act of plagiarism.
During the mid-morning trading session on March 12, the stock price of L&W had a 0.3% increase, reaching $152.30. Conversely, the stock price of Aristocrat declined by 0.6% to $45.62.
