Ainsworth Game Technology has entered into an $8.5 million patent licence and settlement agreement with Aristocrat, resolving potential claims over the historic use of key gaming patents in Australia and providing the company with greater commercial certainty as it pursues growth in the local market. Both companies are among Australia's largest designers and manufacturers of electronic gaming machines, and Aristocrat has a track record of actively enforcing its Australian patent portfolio against competitors in the sector.

The agreement covers Aristocrat's portfolio of Australian game feature patents, including the Hold & Spin family of features. Hold & Spin is one of the most widely recognised and commercially significant game mechanics in the electronic gaming machine industry, featured across numerous popular titles in the Australian and broader Asia-Pacific markets. Under the licence, Ainsworth is permitted to use the patented technology across its branded electronic gaming machines as well as its online and mobile game offerings in Australia.

The licence extends to products that are manufactured or serviced through third-party partners. Ainsworth's customers, distributors, and venues will receive automatic pass-through rights, allowing them to use, operate, service, and resell units supplied during the agreement period.

Ainsworth will pay Aristocrat $8.5 million in instalments over a three-and-a-half-year term. All other commercial terms of the deal remain confidential.

In addition to the game feature patents, the agreement grants Ainsworth a royalty-free licence to Aristocrat's Australian responsible gaming patents. These cover technologies such as digital wallets, account-based play, player limits, self-exclusion, player messaging, and AI-based risk detection. These royalty-free rights will remain in effect until the relevant patents expire, extending beyond the agreement's initial three-and-a-half-year term. The inclusion of these responsible gaming technologies comes amid increasing regulatory focus on harm minimisation across Australian jurisdictions, where state governments have been tightening requirements around player protection tools and cashless gaming systems.

As part of the settlement, both companies have agreed to mutual releases covering past use of the licensed patents. They have also entered into a mutual covenant not to challenge each other's licensed patents going forward.

Separately, Ainsworth has granted Aristocrat a non-exclusive, non-transferable licence to Ainsworth's own patents for use in Aristocrat-branded products within Australia.

Ainsworth CEO Ryan Comstock said the agreement provides the company with the certainty needed to confidently execute its Australian growth strategy.

The original article was published by The Market Online Australia.