Major game developers behind recent hit titles encounter rising legal challenges over intellectual property similarities. Courts increasingly apply unfair competition laws instead of narrow copyright claims, setting a new precedent for IP evaluations in public offerings.
Legal experts highlight this evolution as a critical benchmark. Analysis reveals regulators and judges prioritize broader goodwill protection, piercing inflated valuations tied to questionable practices.
111% Wins Partial Victory in Plagiarism Suit Against Newnormalsoft
The Seoul Central District Court’s 63rd Civil Division, under Chief Judge Lee Gyu-young, delivered a partial win for game firm 111% on February 2. The ruling targeted Newnormalsoft for unfair competition linked to its game “Geuman Jjom Cha Deul-eowa,” ordering 557 million won in damages.
111% launched Newnormalsoft’s “Unppal Jom Mak Gem” in May 2024 and spotlighted “Geuman Jjom Cha Deul-eowa” in December 2023. Post-release probes uncovered overlaps in user interfaces, sales patterns, and overall strategies.
111% pursued an injunction in December for copyright infringement after acquiring development rights. The court rejected direct copyright violations but upheld damages via service center claims.
Plaintiff representatives pointed to telltale signs, including total sales graphs mimicking an “8” shape. A 111% spokesperson explained, “Elements like dual-game sales forming an ‘8’ exist, but internal figures serve as mere mobile game benchmarks. True changes reflect creative expressions.”
Broader evidence, including company structures and sales data, indicated Newnormalsoft capitalized on 111%’s reputation for economic gain.
Nexon and Peers Face Similar Regulatory Heat
This pattern extends to Nexon subsidiary Neople versus Ironmace. Despite no proven copyright breach in “Dark and Darker,” courts mandated 5.764 billion won in damages for unfair competition.
Ensisoft (036570) also prevailed against Webzen, alleging “R2M” mimicked “Lineage M.” Regulators confirmed 169 million won in compensation.
These cases underscore a strategic pivot. Legal circles view them as prioritizing comprehensive goodwill over isolated copyrights, especially amid public listing preparations.
Industry Warns of Lasting Impacts
Game firms embedding IP protections for blockbusters now risk amplified claims. A sector leader noted, “Largest publishers face direct hits; regulators leverage service centers to pursue goodwill-based damages, shedding light on sales pretext impacts.”
The Korean Game Industry Association elaborated, “Sales data holds no ledger weight in operations, yet this damages approach signals a pivotal shift in business law.”
Executives stress, “Piercing IP claims on any core element proves vital, regardless of valuation basis, fostering robust enterprise strategies.”
