Paperclip Investments Ltd, a technology and software development company operating across several African markets, has initiated legal action against Sparkhouse Ltd over alleged breaches of a licensing agreement and infringement of intellectual property relating to its flagship product, the MegaCash Lucky Box.
According to a media statement issued by Paperclip, the legal action was formally commenced in October 2025 following what the company describes as the unauthorized replication and development of its proprietary gaming software into two products marketed by Sparkhouse as Scratch 4 Win and Seven Cups.
Paperclip Investments specializes in scalable digital solutions with a strong focus on intellectual property development, innovation, and regional expansion. The company maintains that its MegaCash Lucky Box is a protected product developed through significant investment, research, and proprietary technology.
The dispute stems from an End User Software Licensing Agreement (EUSLA) between the two firms, under which Sparkhouse was granted non-exclusive rights to use Paperclip’s betting and gaming software. Paperclip alleges that Sparkhouse violated the agreement by reverse engineering the licensed software and using confidential information and trade secrets obtained during the partnership to develop competing products that closely mirror MegaCash Lucky Box.
Paperclip further disclosed that following internal discussions between the parties, Sparkhouse initially agreed not to launch the allegedly infringing product, Seven Cups, in Ghana or any other market where Paperclip operates. However, the company claims that barely a month after this understanding, Sparkhouse went ahead to further develop and promote another product, Scratch 4 Win, which Paperclip also considers infringing.
Describing the development as the “final straw,” Paperclip also accused Sparkhouse of acting in bad faith within the context of a proposed joint venture. The company stated that despite a nine-month operational understanding on forming a joint venture through a newly created entity that would hold the lottery license, Sparkhouse allegedly unilaterally renewed the license in its own name.
Paperclip claims this move deviated from the agreed shared model and was subsequently used to pressure it into surrendering ownership of the MegaCash software to the proposed joint venture. The company characterizes these actions as financial duress and a clear breach of trust.
“Sparkhouse’s actions represent a direct violation of our licensing agreement, the spirit of our partnership, and the principles of fair competition,” a representative of Paperclip Investments said. “We are taking this breach seriously and are pursuing all legal remedies available to protect our intellectual property and business interests.”
As part of the legal action, Paperclip is seeking injunctive relief and damages at the High Court of Ghana, which it says has the appropriate jurisdiction to hear the matter. The company reaffirmed its commitment to integrity, transparency, and lawful innovation across all its operations.
Paperclip also issued a warning to third parties, stating that it will not hesitate to join any entity that facilitates or promotes the alleged infringement to the suit. The company confirmed that formal notices have already been sent to telecommunications companies, media houses, and third-party integrators.
Citing Ghanaian copyright law, Paperclip emphasized that facilitating parties may be held liable for assisting in continued infringement, with provisions allowing for personal liability of directors and partners of corporate entities found to have facilitated copyright violations.
For media inquiries, Paperclip Investments listed Ibrahim A. Abdi, Legal Lead and Communications Team member, as the primary contact. The company also provided details of its Ghanaian legal representative, Samuel Kissiedu, Esq., for further engagement on the matter.
The case is expected to draw significant attention within Ghana’s gaming, technology, and intellectual property landscape as it unfolds.
