Light & Wonder Agrees To Settle With Aristocrat On Trade Secrets Case

I first discussed this case way back in May of 2024, digging into how it highlighted one of the more esoteric types of intellectual property that receives protection. Everyone knows that things like books, movies, and music can be protected, but slot machines? The dispute between Aristocrat Technologies and Light & Wonder served as a fantastic reminder that these machines can fall under copyright, trade secret, and even unfair competition laws.

The previous post detailed the initial dispute between Aristocrat and Light & Wonder. Namely, that Light & Wonder's games improperly mirrored proprietary elements of Aristocrat's Dragon Link series. Well, we now have a significant development in that matter. Light & Wonder has agreed to settle the long-running litigation with Aristocrat by paying approximately $127.5 million and ceasing commercialization of the disputed games.

What happened?

Tracking the Court Case

In early 2024, Aristocrat filed lawsuits in both U.S. and Australian courts alleging that Light & Wonder's titles (Dragon Train and Jewel of the Dragon) were developed using trade secrets tied to Aristocrat's highly successful Dragon Link franchise. Those claims centered on the alleged misuse of proprietary mathematical models and confidential game development information.

The case highlighted a critical reality for game developers and technology companies: while themes and general ideas may be difficult to protect, the underlying mechanics, algorithms, and confidential processes that drive a product's success can qualify as protected intellectual property. Improper use of that information can result in substantial legal exposure.

As the litigation progressed, courts issued a series of rulings that significantly shaped the case. Most notably, a federal court in Nevada granted Aristocrat a preliminary injunction, finding it highly likely that Light & Wonder had misappropriated protected intellectual property. That ruling forced Light & Wonder to halt distribution of the disputed games, creating immediate business consequences and increasing the stakes of the litigation.

Going to Trial Was Not Worth It

Rather than continue toward trial, the parties ultimately reached a global settlement. Under the agreement, Light & Wonder will pay $127.5 million to resolve all claims brought by Aristocrat. Light & Wonder also acknowledged that certain Aristocrat mathematical information was used during the development of the contested games and agreed to permanently remove those games from the market worldwide.

In addition, the settlement requires Light & Wonder to destroy documents containing Aristocrat's proprietary information and prohibits any future use of those trade secrets. Both companies issued a joint statement confirming that the settlement resolves the pending litigation in both the United States and Australia.

What Should Your IP Takeaways Be?

This resolution offers several important takeaways for companies operating in competitive, innovation-driven industries:

Trade secrets are valuable assets. Hopefully, this is obvious, but things such as proprietary algorithms, mathematical models, and development processes can be just as valuable – and legally protectable – as more traditional forms of intellectual property.

Multiple IP protections may apply. Copyright, trade secret, and unfair competition laws often overlap, particularly in technology and gaming-related disputes.

Early enforcement matters. Preliminary injunctions and other early court rulings can dramatically influence litigation strategy and settlement outcomes.

For developers, publishers, and technology companies, this case serves as a reminder that intellectual property protections are not merely theoretical. When properly enforced, they can have real and significant financial consequences.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.