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Krafton-NetEase settlement dispute goes to trial

PUBG and Knives Out publishers disagree on which one violated the 2019 settlement agreement over copyright claims

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Krafton and NetEase are set to appear in San Mateo, California court this week in the ongoing copyright legal battle sparked by the titles Knives Out and Rules of Survival.

The copyright dispute began in April 2018 over the alleged copyright infringement of PUBG. The gaming firms eventually settled and reached a confidentiality agreement in March 2019.

However, Krafton said that NetEase breached settlement terms in October 2019. The Knives Out publisher acknowledged it conducted a "single, specific violation" in court. The company said it had voluntarily corrected the infringement and added that it was unlikely to happen again.

Krafton argues that there were multiple breaches of the settlement agreement. However, a San Francisco Superior Court Judge said this was a disagreement over unclear wording between the two companies.

Additionally, in response to the settlement dispute, the judge said, "PUBG has shown 'a significant likelihood that it will prevail on the merits of its claims for breach of contract.'"

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Jeffrey Rousseau avatar

Jeffrey Rousseau

Staff Writer

Jeffrey Rousseau joined GamesIndustry.biz in March 2021. Based in Florida, his work focused on the intersectionality of games and media. He enjoys reading, podcasts, staying informed, and learning how people are tackling issues.