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Krafton and NetEase settle PUBG, Knives Out dispute

Krafton and NetEase have resolved their dispute over PUBG and Knives Out.

A San Mateo Superior Court judge ruled that Krafton proved NetEase breached the terms of their contract, but came to the conclusion that Krafton had failed to prove the $65 million in damages it had asked for.

The court awarded Krafton an undisclosed sum “in liquidated damages” for Knives Out, Rules of Survival, and Survival Royale. It denied Krafton’s request for injunctive relief.

The copyright dispute started in April 2018, which saw Krafton sue NetEase for alleged copyright infringements in its mobile battle royale titles, Knives Out and Rules of Survival.

Krafton argued that the “overall look, feel, and audiovisual style of [both games] closely mimic the stylised realism” of PUBG.

The two companies reached a confidentiality agreement in March 2019. However, Krafton accused NetEase of breaching multiple settlement terms, such as failing to change certain elements of the game, including buildings and map layouts, as well as in-game items.

This led to a new dispute which went to trial earlier this year. The court ruled that NetEase had failed to uphold its agreements from the settlement, including promoting the game using assets and elements that were supposed to be changed.

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