Jul 11, 2025
Seoul High Court Affirms Lawfulness of Wemade’s Physical Division and Chinese Licensing Agreement, Even Under Chinese Law
ActozSoft's Claims Dismissed, Original 80:20 Royalty Distribution Ratio From Court Settlement Upheld
Wemade has prevailed in a ruling concerning copyright infringement of The Legend of Mir 2 IP, with Seoul High Court dismissing ActozSoft's claim in the remand proceeding.
The original proceeding was remanded by the Supreme Court of Korea in June 2024. The remand order stipulated that, for this case, the issues of copyright infringement in China and the assignment of copyright from Wemade to ChuanQi IP following the former's physical division needed to be adjudicated under Chinese law as the governing law.
In the latest ruling, Seoul High Court maintained that, even under Chinese law, the assignment of copyright for The Legend of Mir 2 IP to ChuanQi IP following the physical division of Wemade was lawful.
The Court also rejected ActozSoft's claim for a royalty distribution ratio of 50:50, and ruled that the profits arising from the licensing agreement for The Legend of Mir 2 IP must be distributed 80% to Wemade and 20% to ActozSoft, as per Wemade's original stance.
Wemade previously paid ActozSoft approximately 4.5 billion KRW following the initial ruling in 2019, which amounted to the total amount of royalties due to ActozSoft based on the original distribution ratio of 80:20.
With the latest ruling from Seoul High Court, Wemade's prospects for a favorable final resolution have significantly increased in the long-standing legal dispute between the two parties, which stems from issues regarding the distribution of royalty payments derived from mobile games in China that are based on The Legend of Mir 2 IP.
A Wemade insider commented that, "It appears the long-standing legal dispute between Wemade and ActozSoft will soon conclude. The two companies will cooperate in many areas of business and work together on initiatives to enhance the value of the Mir IP."