In a surprising bout of courtroom drama, Spribe, creators of the fan favourite crash game Aviator, was ordered to pay out $330 million in damages after losing a trademark and copyright case in Georgia.
Earlier this week, the online gambling industry was reminded that it does not exist in a silo where it can use any graphics, names and logos without ensuring they have the rights to them. Join us as we delve into how the unfair use of the term ‘Aviator’ and its associated logo costs Spribe owners Flutter Entertainment a whopping $330 million and could get their top-earning game shut down.
The Rise of Aviator Gambling
One of the most exciting casino game types to come from the launch of the blockchain is Crash games. In 2018, casino software developer Spribe capitalised on this emerging market with the release of Aviator.
The simple casino game allows you to place a bet and watch as the iconic Aviator aeroplane takes to the skies. You only have to decide when to exit the game and claim your win multiplier. Wait too long, and it will crash, and you walk away empty-handed.
Categorised as a mini-game, Aviator's simple gameplay loop and fast-paced action made It an instant success with players worldwide. According to various gaming reports, it is available at more than 4,500 online casinos and is enjoyed by more than 12 million players monthly. This has led online casinos to report revenue increases of up to 10% from this one title.
What Goes Up, Must Come Down
Sadly, life would imitate art this year when Texas-based Aviator LLC sued Spribe OÜ and Adjarabet for trademark and copyright infringement.
The company claimed it owns “several trademark registrations for the graphic logo ‘Aviator’ for gambling services including online and physical casino services and gambling”, which predates Spribe's “computer games and gambling services” trademark of the word ‘Aviator’.
The lawsuit asked the courts to invalidate the Spribe trademark applications and, simultaneously, order the Adjarabet gambling platform to cease using “the name Aviator as well as the image belonging to the claimant”.
Big Money, Big Whammy – For Spribe
The Georgian courts upheld Aviator LLC’s ownership of the Aviator trademark, saying that it felt the Spribe trademark registrations were done in bad faith and that they had “infringed copyright on the claimant’s image”.
Nikoloz Gogilidze, Managing Partner of the law firm Mikadze Gegetchkori Taktakishvili LLC, which represents Aviator LLC, said:
Quote“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.”
Due to the noted bad faith and wide use of the claimant's intellectual property, the courts awarded Aviator LLC $330,000,000 in damages and ordered Spribe to "stop the use of the name Aviator for its flagship game and online streaming of the casino games."
Whether Spribe will change the branding of its most popular crash casino game or negotiate a trademark agreement with Aviator LLC has yet to be confirmed. However, this case is a warning to casino game developers to ensure they secure all necessary licenses and trademarks before going to market.
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