Aviator LLC Wins $330 Million Trademark and Copyright Claim against Gaming Operators Spribe OÜ and Adjarabet

Rhea-AI Summary

On August 20, 2024, the Court of First Instance in Georgia ruled in favor of Aviator in a copyright and trademark infringement case against Spribe OÜ and Adjarabet, owned by Flutter Entertainment Plc (NYSE: FLUT). The court awarded Aviator $330 million in damages, invalidated Spribe OÜ's trademark registrations, and ordered Adjarabet to cease using the 'Aviator' name for its flagship game.

The lawsuit claimed that Spribe OÜ registered 'Aviator' trademarks in bad faith and infringed on Aviator 's copyright. The court agreed, invalidating Spribe OÜ's registrations and ruling against Adjarabet for illegal use of the Aviator brand and image.

Positive

• Flutter Entertainment's subsidiary Adjarabet ordered to stop using the 'Aviator' name for its flagship game
• Court ruling provides clarity on intellectual property rights in the online gambling industry

Negative

• Flutter Entertainment's subsidiary Adjarabet faces $330 million in damages for copyright and trademark infringement
• Adjarabet must cease using a popular game name, potentially impacting revenue
• Legal decision may affect Flutter Entertainment's operations and reputation in Georgia

Insights

Legal Expert

This ruling marks a significant victory for intellectual property rights in the online gaming industry. The court's decision to invalidate Spribe OÜ's trademarks on grounds of bad faith registration and copyright infringement sets a precedent for similar cases globally. The $330 million damages awarded is substantial and could have far-reaching implications for both Spribe OÜ and Adjarabet.

The ruling's impact on Flutter Entertainment Plc, Adjarabet's parent company, could be considerable. Investors should monitor how this might affect Flutter's financial statements and future earnings reports. This case underscores the importance of due diligence in trademark and copyright matters for gaming companies, especially when expanding internationally or acquiring new properties.

Financial Analyst

The $330 million award is a significant financial blow to the defendants. For context, this amount could represent a substantial portion of annual revenues for mid-sized gaming operators. Investors in Flutter Entertainment Plc (NYSE: FLUT, LON: FLTR) should be particularly concerned, as this liability could impact the company's balance sheet and future earnings.

Key financial implications include:

• Potential for reduced profitability in upcoming quarters
• Possible need for increased legal reserves
• Impact on Flutter's ability to pursue other acquisitions or investments

Shareholders should closely monitor Flutter's next earnings report and any statements regarding this ruling, as it may necessitate a significant one-time charge or impact ongoing operations.

Gaming Industry Analyst

This ruling could reshape the landscape of online gaming, particularly in emerging markets like Georgia. The decision highlights the risks associated with using potentially infringing content in popular games. The "Aviator" game, being Spribe's flagship product, likely contributed significantly to their revenue. Its removal from Adjarabet's platform could lead to:

• Decreased player engagement and retention
• Reduced revenue for both Spribe and Adjarabet
• Potential market share loss to competitors

This case serves as a wake-up call for the industry to prioritize original content creation and thorough IP clearance. It may also spark a trend of increased scrutiny and litigation in the rapidly growing online gaming sector, potentially slowing innovation and increasing operational costs for gaming companies worldwide.

TBILISI, Georgia--(BUSINESS WIRE)-- On August 20, the Court of First Instance in the country of Georgia ruled in favor of Aviator LLC’s copyright and trademark infringement claim against the gaming company Spribe OÜ and Adjarabet, Georgia’s largest online casino which is owned by the UK-based company Flutter Entertainment Plc (NYSE: FLUT) (LON: FLTR). The court ruling found copyright and trademark infringement and invalidated trademark registrations based on bad faith registration and copyright infringement, awarding the claimant damages in the amount of $330 million.

“We are pleased with the outcome of the court’s ruling on this claim, and we will continue to aggressively protect our client’s intellectual property from unlicensed use on any international gaming platforms,” said Nikoloz Gogilidze, Managing Partner of the law firm Mikadze Gegetchkori Taktakishvili LLC, which represents Aviator LLC.

Aviator LLC owns several trademark registrations for the graphic logo “Aviator” for gambling services including online and physical casino services and gambling. The image and brand name “Aviator” has been used by Spribe OÜ in its flagship game which was offered by the online gambling platform www.adjarabet.com in Georgia. In 2021-2022, Spribe OÜ registered its own “Aviator” trademarks for computer games and gambling services, which the claimant argued were infringing on their original trademark.

Aviator LLC filed a lawsuit against Spribe OÜ claiming invalidation of the trademarks based on two grounds: 1) trademarks were registered in bad faith as SPRIBE OU knew about the existence of claimant’s rights and at the same time was using claimant’s image and trademark for its crash game; and 2) trademark registrations infringed claimant’s copyright on the above mentioned image.

In the same lawsuit, Aviator LLC requested to prevent online gambling platform www.adjarabet.com from using the name Aviator as well as the image belonging to the claimant and asked for damages for prior illegal use.

On August 20, 2024, the Court of First Instance delivered its decision and satisfied all the claims of the claimant. Namely, the court ruled that trademarks of Spribe OÜ were registered in bad faith, and secondly, that the trademarks of Spribe OÜ infringed copyright on the claimant’s image. With this ruling, the court has invalidated the challenged trademark registrations on the abovementioned grounds.

As for the claim against online gambling platform www.adjarabet.com the court ruled in favor of the claimant, ordered the platform to stop the use of the name Aviator for its flagship game and online streaming of the casino games. The court has awarded Aviator LLC US$330,000,000 in compensation for trademark and copyright infringement for prior illegal use.

For further information and media queries, please contact Aviator LLC’s representatives at info.aviator@mikadze.ge.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240826080003/en/

 Nikoloz Gogilidze, info.aviator@mikadze.ge 

Source: Aviator LLC

FAQ

What was the outcome of Aviator 's lawsuit against Spribe OÜ and Adjarabet?

The Court of First Instance in Georgia ruled in favor of Aviator , awarding $330 million in damages, invalidating Spribe OÜ's trademark registrations, and ordering Adjarabet to stop using the 'Aviator' name for its flagship game.

How does the court ruling affect Flutter Entertainment Plc (NYSE: FLUT)?

Flutter Entertainment's subsidiary Adjarabet must pay damages and cease using the 'Aviator' name for its flagship game, potentially impacting revenue and operations in Georgia.

What were the main claims in Aviator 's lawsuit?

Aviator claimed that Spribe OÜ registered 'Aviator' trademarks in bad faith, infringed on their copyright, and that Adjarabet illegally used their brand and image for online gambling services.

When did the Court of First Instance in Georgia make its ruling on the Aviator case?

The Court of First Instance in Georgia made its ruling on August 20, 2024.