Technology Software entity Paperclip Investments Limited has initiated legal action against Sparkhouse over alleged breaches of infringement rights.
Paperclip Investments Ltd operates across multiple African markets.
The company specialises in scalable digital solutions, with a strong focus on intellectual property development, innovation, and regional expansion. Among its products is the Mega Cash Lucky Box.
According to its legal lead, Ibrahim Abdi, in October 2025, Paperclip Investments Ltd formally commenced legal proceedings against Sparkhouse Ltd, citing serious breaches of a licensing agreement and intellectual property rights.
He said the matter relates specifically to the unauthorised development of a derivative of the Megacash Lucky Box Game into two products, namely the Scratch4win and Seven Cups.
He explained that the dispute arises from an End User Software Licensing Agreement (EUSLA) entered into between the two companies, under which Sparkhouse was granted non-exclusive rights to use Paperclip’s proprietary betting and gaming software.
Mr Abdi explained that Sparkhouse allegedly engaged in reverse engineering, replication, and unauthorised development of strikingly similar products — “Scratch 4 Win” and “Seven Cups” — using confidential information and trade secrets entrusted to them under the terms of the partnership and during operational meetings between the parties.
“Initially, after interparty discussions, Sparkhouse agreed not to launch the infringing Seven Cups in
Ghana or any other country where Paperclip has operations, due to the similarities between the
provided the Software and the infringing Seven Cups,” he added.
He continued that “however, a month after this understanding, Sparkhouse further developed the now-alleged infringing product known as Scratch 4 Win.
He argued that this was the last straw for Paperclip, which they believe Sparkhouse shortchanged them despite a 9-month operational understanding of the structure and management of the joint venture.
He added that Sparkhouse unilaterally renewed the lottery license in its own name, deviating from the agreed-upon shared model, under which all parties would have created a new vehicle to form a joint venture that would have effectively held the lottery license.
The legal lead further claimed that Sparkhouse used this move to apply pressure to have the JV surrender ownership of the Megacash Software, an act of Paperclip described as financial duress and bad-faith conduct.
“Sparkhouse’s actions “represent a direct violation of our licensing agreement, the spirit of our
partnership, and the principles of fair competition,” he said.
“We are taking this breach seriously and are pursuing all legal remedies available to protect our intellectual property and business interests.”
Paperclip is now seeking an injunction and appropriate damages through the High Court of Ghana, which has competent courts of jurisdiction in Ghana, and has reiterated its commitment to upholding integrity, transparency, and lawful innovation across all its business operations.
In accordance with Ghanaian Copyright Laws, a facilitating party is liable if found guilty of assisting in
continued infringement, the law expressly provides for individual liability of partners and directors of
cooperate that facilitates copyright Infringement.
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Source: www.myjoyonline.com
