Tencent’s Supercell gaming unit must pay US$8.5 million in ‘freemium’ dispute
- Japanese company Gree said Supercell’s Clash of Clans, Clash Royale and Brawl Stars games infringed its patents
- Supercell ranked as the world’s fourth-biggest video game publisher by revenue, behind industry leader Tencent, NetEase and Activision Blizzard
The jury also found that the infringement was wilful, so District Court Judge Rodney Gilstrap could increase that amount by as much as three time the figure set by jurors. The dispute is over features in “freemium” games – a portmanteau of the words “free” and “premium” – that are free to download, but make money by letting users buy virtual items or upgrade during the game. Gree was one of the pioneers of the technique, also known as gacha.
Gree said Supercell’s Clash of Clans, Clash Royale and Brawl Stars games infringed its patents for methods for controlling and presenting downloadable games to smartphone players, controlling their in-game purchases and transfers of objects between players, and enhancing the visual effects for multiplayer mobile games.
Supercell denied using any of Gree’s patented technology, and argued that the patents were invalid. The jury rejected Supercell’s invalidity arguments.