NetEase slaps Blizzard Entertainment with lawsuit after World of Warcraft creator suspended Chinese services
- NetEase’s lawsuit demands US$45 million as compensation for refunds it paid to affected gamers after Blizzard Entertainment suspended local services
- The US firm asserts that it is not in breach of any licensing deal and that NetEase appears to be complaining about a standard industry practice
The sum that NetEase has demanded from Blizzard Entertainment covers the refunds to local players, which the Chinese company has paid in full, related to the discontinued US-developed titles – including Overwatch, Hearthstone, StarCraft and Diablo III – as well as payments related to unsold gaming-related merchandise and certain undeveloped games, according to a report on Monday by The Paper, a mainland digital newspaper.
“We haven’t received the lawsuit yet, but we are confident we aren’t in breach of any licensing agreements,” the statement said. “The terms [that] NetEase appears to be complaining about reflect standard industry practice and have been mutually beneficial for years.”
“While this persistent campaign by one former partner is disappointing and puzzling, it’s important to note that we have enjoyed nearly two decades of positive experiences operating in China, and remain committed to serving players and protecting their interests,” the US firm said.
NetEase did not immediately respond to a request for comment on Tuesday.
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The Shanghai lawsuit marks an escalation in the dispute between NetEase and Blizzard Entertainment on the treatment of local players of US-developed games since the end of 2022.
Founded in 2008, Shanghai EaseNet Network had been directly responsible for overseeing parent NetEase’s licensing deal with Blizzard Entertainment.
Under China’s tough video gaming regulations, foreign titles can only be published on the mainland via local distributors. Blizzard Entertainment has yet to announce the latest progress on its negotiations for a new Chinese distributor.
NetEase responded by describing the offer as unfair, as Blizzard Entertainment also negotiated at the same time with other companies for a three-year licensing deal on the mainland.
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The litigation could turn into a “slap on the face” for Activision Blizzard, Zhang said.
In a separate lawsuit, NetEase has filed a complaint against Blizzard Entertainment and The9 – the Chinese operator of World of Warcraft before NetEase struck a licensing deal in 2009 – for rights infringement, according to information on Chinese business registry site Tianyancha.
The case is expected to hold its second hearing on Wednesday at a court in Hefei, capital of eastern Anhui province.