Krafton and NetEase Battle Ends - Legal Settlement Reached

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Krafton and NetEase Games have settled their copyright dispute over PUBG Mobile, ending years of legal tension and competition.

Krafton and NetEase Games have reached an agreement to end their prolonged legal battle over copyright issues linked to PUBG Mobile, a popular battle royale game.


Initially, Krafton accused NetEase of replicating elements from its game with the launch of similar mobile titles.


The legal proceedings began in May 2018, when Krafton filed a lawsuit against NetEase, claiming that the Chinese developer’s games, "Knives Out" and "Rules of Survival," bore a striking resemblance to the realistic aesthetics of PUBG Mobile.


Krafton alleged that these free-to-play games were strategically released to undermine the anticipated launch of PUBG Mobile later that year.


A private settlement was reached in March 2019, but tensions resurfaced when Krafton contended that NetEase had violated the terms of this agreement. This led to further litigation, which commenced on May 1, 2023, in a US court.


In a recent ruling, the court sided with Krafton, determining that NetEase did breach the contract by failing to comply with the agreed changes.


However, the court did not find sufficient evidence to support Krafton’s claim for $65 million in damages. Instead, Krafton was awarded an undisclosed amount as liquidated damages.


This settlement brings a close to a dispute that has been ongoing for five years, reflecting the complexities of copyright and competition in the gaming industry.Krafton has had its share of legal challenges in the gaming industry.


In January of the previous year, the company initiated a lawsuit against Garena, the creator of Free Fire and Free Fire Max.


The allegations centered around claims that Garena had replicated elements from PUBG, thereby benefiting financially at Krafton's expense.


Additionally, back in 2018, Krafton also took legal action against Epic Games, alleging that Fortnite had infringed on PUBG's intellectual property.


However, that particular lawsuit was withdrawn later that same year.


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