Photo = Yonhap news

 

 

[Alpha Biz= Kim Jisun] Wemade has claimed it was defrauded of approximately 840 billion KRW (around RMB 4.6 trillion) in unpaid royalties related to the intellectual property (IP) rights of its popular MMORPG Legend of Mir 2 by Chinese game company Shengtqu Games.



At a press conference held on April 21 at its headquarters in Pangyo, Seongnam, South Korea, Wemade detailed ongoing legal disputes over the Mir 2 copyright with Chinese game developers.



Wemade, which was spun off from Actoz Soft in 2000, co-owns the rights to Legend of Mir 2. In 2001, the company signed a licensing agreement with Shengtqu Games (formerly Shanda). The game saw massive success in the Chinese market, but disputes arose when Shengtqu failed to pay contractually obligated royalties between 2002 and 2005.



The situation further escalated in 2005 when Shengtqu acquired Actoz Soft, resulting in a three-party dispute involving Wemade, Shengtqu Games, and Actoz.



Beginning in 2014, Shengtqu allegedly entered into unauthorized licensing deals with third parties in China, distributing the Mir IP without Wemade’s consent and without paying royalties. Despite Wemade's repeated objections, Shengtqu reportedly failed to remit any payments.



In 2023, the International Chamber of Commerce (ICC) ruled in favor of Wemade, ordering Shengtqu to pay damages of 1.5 billion RMB (approximately 300 billion KRW). Actoz Soft was also found jointly liable for 150 billion KRW of this sum. However, due to non-compliance, Wemade filed for enforcement of the arbitration ruling with a Chinese court this past February.



The Seoul Central District Court also recognized the Singapore ICC ruling in August 2024, authorizing compulsory enforcement, yet Wemade says it has yet to receive any compensation.



Wemade also accused another Chinese game giant, Kingnet, of withholding royalty payments for Mir-based titles between 2016 and 2018, including The Southern Legend, Dragon Soul War, and Legend Returns. According to Wemade, the ICC ordered Kingnet’s subsidiary Zhejiang Huanyu to pay 96 billion KRW in damages related to The Southern Legend. However, Chinese courts have allegedly delayed enforcement.



In addition, Wemade has secured arbitration awards of 340 billion KRW for Dragon Soul War and 100 billion KRW for Legend Returns, yet none have been enforced by Chinese authorities. Wemade claims Kingnet has deliberately evaded payment by diverting revenue within affiliated entities.

 

 

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