Ainsworth Game Technology (ASX: AGI) has struck an $8.5 million agreement with Aristocrat to licence key patents and settle potential claims over their historic use in Australia, giving the gaming machine maker greater certainty as it targets growth in the local market.
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The agreement covers Aristocrat’s Australian game feature patents, including the Hold & Spin family, allowing Ainsworth to use the technology across its branded electronic gaming machines and online and mobile games in Australia.
The licence also extends to products manufactured and serviced through third parties, while Ainsworth customers, distributors and venues will receive automatic pass-through rights to use, operate, service and resell units supplied during the agreement.
Ainsworth will pay Aristocrat $8.5 million in instalments over the three-and-a-half-year term, with the remaining commercial terms confidential.
The deal also provides Ainsworth with a royalty-free licence to Aristocrat’s Australian responsible gaming patents, covering technologies including digital wallets, account-based play, player limits, self-exclusion, player messaging and AI-based risk detection. Those rights will continue until the relevant patents expire, extending beyond the agreement’s initial term.
As part of the settlement, both companies have also agreed to mutual releases covering past use of the licensed patents and a mutual covenant not to challenge each other’s licensed patents.
Ainsworth has separately granted Aristocrat a non-exclusive, non-transferable licence covering its patents for Aristocrat-branded products in Australia.
Ainsworth CEO Ryan Comstock said the agreement provides the certainty needed to pursue the company’s Australian growth strategy.
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