Wemade (112040.KQ) said Monday it has concluded its royalty dispute with Chinese game company Kingnet over the intellectual property (IP) of "The Legend of Mir 2" through a settlement agreement, receiving 198.65 million yuan (approximately 43 billion won, or $30 million) in settlement funds.
Wemade had previously pursued international arbitration and litigation in Chinese courts, arguing that Kingnet's subsidiary Zhejiang Huanyou had failed to pay royalties for "Nanyue Chronicles," a game based on "The Legend of Mir 2" that has been serviced in China since 2016.
Wemade won the case and secured a ruling holding Kingnet liable for damages, after which it proceeded with enforcement procedures to collect the compensation.
The company subsequently signed an agreement with Kingnet to mutually withdraw all arbitration and litigation proceedings related to "Nanyue Chronicles" that were underway in Korea, China and Singapore, in exchange for the settlement payment. The deal aims to resolve the risks of a prolonged dispute and enable stable management of the "Legend of Mir 2" IP business.
Separately from this agreement, the International Court of Arbitration of the International Chamber of Commerce (ICC) on the 21st of last month fully dismissed a claim filed by Zhejiang Huanyou against Wemade in 2023 seeking to invalidate the license contract and claim damages.
"This settlement agreement is a meaningful case of holding parties fully accountable for unlawful copyright infringement and upholding the rights of the original copyright holder," a Wemade official said. "We will continue to actively protect key intellectual property rights, including 'The Legend of Mir 2,' and further enhance their value."
