Krafton and NetEase Reach Settlement in PUBG and Knives Out Dispute

Krafton and NetEase have put an end to their ongoing dispute regarding PUBG and Knives Out. A ruling by a San Mateo Superior Court judge determined that NetEase had indeed violated the terms of their contract with Krafton. However, the court also found that Krafton was unable to provide sufficient evidence to support its claim of $65 million in damages. As a result, the court awarded Krafton an undisclosed amount in liquidated damages for Knives Out, Rules of Survival, and Survival Royale, while rejecting Krafton's request for an injunction. The origins of the copyright dispute date back to April 2018, when Krafton took NetEase to court over alleged copyright infringements in its mobile battle royale games, Knives Out and Rules of Survival. Krafton contended that these games bore a striking resemblance to PUBG in terms of their overall aesthetic, audiovisual style, and realism. Following a confidentiality agreement in March 2019, Krafton accused NetEase of failing to adhere to multiple terms of the settlement, including neglecting to modify certain in-game elements such as buildings, map layouts, and items. This led to a new round of disputes that ultimately went to trial, culminating in the court's ruling that NetEase had failed to uphold its commitments, including the misuse of restricted assets and elements to promote the game.