Light & Wonder Inc. Common Stock

Item 1A. Risk Factors

There have been no material changes in our risk factors from those disclosed under Item 1A Risk Factors included in our 2023 10-K., except as noted below.

The intellectual property rights of others, including our competitors, may prevent us from developing new products and services, entering new markets or may expose us to liability or costly litigation.

Our success depends in part on our ability to continually adapt our products and systems to incorporate new technologies and to expand into markets that may be created by new technologies. If technologies are protected by the intellectual property rights of our competitors or other third parties, we may be prevented from introducing products based on these technologies or expanding into markets created by these technologies. If the intellectual property rights of others prevent us from taking advantage of innovative technologies, our prospects, results of operations, cash flows and financial condition may be adversely affected.

We cannot assure that our business activities, games, products, services and systems will not infringe upon the proprietary rights of others, or that other parties will not assert infringement claims against us. In addition to infringement claims, third parties may allege claims of invalidity or unenforceability against us or against our licensees or manufacturers in connection with their use of our technology. A successful challenge to, or invalidation of, one of our intellectual property interests, a successful claim of infringement by a third party against us, our products or services, or one of our licensees in connection with the use of our technologies, or an unsuccessful claim of infringement made by us against a third party or its products or services could adversely affect our business or cause us financial harm. Any such claim and any resulting litigation, such as the Dragon Train litigation described under Aristocrat Matter in Note 15, could:

be expensive and time-consuming to defend or require us to pay significant amounts in damages;

invalidate our proprietary rights;

cause us to cease making, licensing or using products or services that incorporate the challenged intellectual property;

require us to redesign, reengineer or rebrand our products or services or limit our ability to bring new products and services to the market in the future;

require us to enter into costly or burdensome royalty, licensing or settlement agreements in order to obtain or retain the right to use a product, process or component;

impact the commercial viability of the products and services that are the subject of the claim during the pendency of such claim;

impact our brand, reputation and/or ability to attract and retain key personnel; and/or

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require us by way of injunction to remove products or services on lease or stop selling or leasing new products or services.