The results of the entertainment and German litigation case announced that Kaiying Network said that they would start retrial as soon as possible and start repurchase

The litigation dispute between Shanghai Kaiying and the legendary IP has lasted for several years, and now the dust is settled.

On the evening of September 23, Kaiying Network (002517.SZ) released a wholly -owned subsidiary Shanghai Kaiying Network Technology Co., Ltd. (hereinafter referred to as "Shanghai Kaiying") and a wholly -owned second -level subsidiary Zhejiang Huanyou Network Technology Co., Ltd. (hereinafter referred to as "Zhejiang Huanyou") involved the progress of the lawsuit.

According to the above -mentioned second trial judgment, the Shanghai Senior People's Court (hereinafter referred to as the "Shanghai High Court") withdrew the first instance judgment and changed the judgment to support the legendary IP (hereinafter referred to as the "legendary IP").

An insider of Kaiying Network commented on this that the above -mentioned disputes were the longest and largest cases involved in the case in recent years. In any case, the dispute between the two parties also came to an end.

In 2020, Shanghai Kaiying terminated the acquisition of Zhejiang Jiuyi Network Technology Co., Ltd. (hereinafter referred to as Zhejiang Jiuyi) due to the legendary IP. At that time, Kai Ying, who was wrapped in the legendary IP, was unbearable to entertain and virtue.

The decision made the dispute between the two parties enter the public vision again.

Kaiying's Internet informed that "Legend IP has tried to pressure the company to achieve its business purposes through malicious reports, malicious lawsuits, malicious preservation, etc. in recent years. , Acting and termination of cooperation, such as legal and compliance methods, etc. of legal and compliance methods, effectively safeguard the legitimate rights and interests of themselves and the majority of investors, resolutely fight against malicious lawsuits to the end, and work hard to protect the legitimate interests of the majority of investors. "

At the performance briefing held by Kaiying Network on the evening of September 23, the company's executives also responded to the impact of the institution's concern. Kaiying Network executives said that the amount of this judgment is expected to reduce the company's net profit in 2022, and the company will also start application for retrial and prosecution as soon as possible. If you win again, the other party can be returned to the judgment amount according to the results of the lawsuit.

Cause: decided to cooperate with entertainment and Germany in 2016

It is understood that "MIR2" is the predecessor of the bloody legend, and the earliest Actoz product. In 1998, Park Guanhao, the leader of his R & D team, left the establishment of entertainment and Germany and began to operate independently.

The first -born entertainment and virtue did not fully "monopolize" "MIR2". Instead, the company's 40%shares and the common ownership of "MIR2" were transferred to the old Dongjia Actoz to form a 5: 5 equity ratio. Let Actoz take part in part of the operation responsibility and share part of the risks. However, the proportion of equity agreed by the above parties also led to the division dispute between Yato and Entertainment, which then affected the domestic game companies participating in the legendary IP authorization at that time.

According to public data, in the past ten years, the entertainment Virtue has launched more than 40 copyright disputes in the Chinese market, and more than 20 Chinese game companies have been implicated. More than 30 games have been blocked. The amount is as high as tens of billions of yuan. Among them, Kaiying Network and Zhejiang Jiuyi.

Regarding disputes between the two parties, Kai Ying's executives said that "the dispute involved in this lawsuit was caused by the subsidiary dispute that caused the parent company to bear joint responsibility."

In 2016, Kai Ying Network, who was still Wang Yue, decided to cooperate with entertainment and Germany.

On October 25 of that year, Zhejiang Huanyou Network Technology Co., Ltd. (hereinafter referred to as "Zhejiang Huanyou") and Entertainment Entertainment Co., Ltd. (hereinafter referred to as "Entertainment and Germany"), a second -level subsidiary of Kaiying, signed "MIR 2 Mobile Game License Agreement "(Chinese Name: Legendary Mobile Games License Contract) and" Legend of Mir Web Game License Agreement "(Chinese name: Legend web game license license contract).

Before signing the contract, Entertainment and Germany to Zhejiang to ensure that it has the right to unilaterally authorize, and does not need to pass A Takushis's advance consent. However, after the contract was disclosed, Zhejiang Huanyou received a lawyer's letter from the legendary game. Especially in December 2021, the Supreme Court made a number of effective judgments. It is clear that entertainment and virtues do not have the right to unilaterally authorize unilaterally, and verify the requirements of Ya Tuoji.

In January 2017, Zhejiang Huanyou issued a notice to the contract with Entertainment. In February 2017, Entertainment and Germany proposed the 22593/PTA arbitration to the ICC International Arbitration Tribunal, requiring Zhejiang Huanyou to compensate 50 billion won (about 300 million yuan).

Boots

In October 2018, the two parties each claimed their claims at the hearing. Kaiying Network's Zhejiang Huanyou hopes to terminate the agreement and require the product operation caused by the other party to be blocked, resulting in a total of 332 million yuan in losses and interest.

However, at the hearing, entertainment and Virtue first raised the compensation to 1.484 billion; then, two games were then applied for arbitration in South Korea and Singapore for Kai Ying's "Dragon City War Song" and "Legend Comes".

Different in the past, in this arbitration, Entertainment also demanded that Jiuli compensated for the loss of entertainment and virtue for a total of 7.662 billion yuan. At that time, Jiu Yan itself, the overall net profit in 2018 was only about 200 million yuan.

On the other side, in May 2019, ICC ruled that Zhejiang Huanyou compensated for entertainment and Germany for a total of about 480 million yuan. Zhejiang Huanyou was unable to settle in huge debt as the main body of compensation, and it stopped operating in May 2019. In October 2019, Shanghai Kaiying, the holding company of Zhejiang Huanyou, to the Fourth Central Court of Beijing, Shanghai Kaiying, as the executor, was repeatedly applied to different courts for Shanghai Kaiying as the executor after being rejected by the court.

According to the China Magistrate Document Network, the Beijing Fourth Central Court has previously issued a notice, execution ruling, and reporting property order to Zhejiang Huanyou. 100 million yuan). As of May 31, 2019, Zhejiang Huanyou's total assets were RMB 64.914 million.

In June 2020, the legendary IP filed a complaint to the Shanghai No. 1 Intermediate People's Court to damage the company's creditors' interest liability disputes, requiring Shanghai Kaiying to be the executor of the 22593/PTA arbitration. The legendary IP appealed again after the first trial was rejected.

Until September 23, Kaiying Network received the results of the second trial judgment.

response

According to the Kaiying Network semi -annual report, as of June 30, 2022, the monetary funds on Kaiying's online account was 1.895 billion yuan. However, the above -mentioned judgment will still have a certain impact on the company's annual net profit.

People from Kaiying Network informed that the amount of this judgment is expected to reduce the net profit of Kaiying Network in 2022, but the company's current funds will be abundant. The impact of profit or loss is subject to the regular report released by the company.

In addition, while publishing the results of the lawsuit, Kaiying Network board of directors reviewed and approved a new round of repurchase plan. It is used to implement equity incentive plans and employee holdings.

In terms of IP, the new management has begun to cooperate with Shengqu Game as a method of impact from entertainment and virtue.

In January 2021, Kaiying Network and Shengqu Game signed the "Comprehensive Deepening Strategic Cooperation Agreement" to conduct in -depth cooperation in many fields, especially in the field of IP resources. Kaiying's network executives told, "All the company's current legendary game IP authorization comes from Shengqu Game. In the future, the company and Shengqu Game will start in deeper cooperation in legendary IP and other fields."

"The company will maintain a stable and healthy development, and the reserve products are advancing in an orderly manner." Kaiying Network executives said in response to investors' subsequent products, and in 2022, Kaiying Network launched the game product "Battle of Angels", "Xuan Xuan", "Xuan Xuan" "Chinese Ji", "The Realm of the Holy Spirit", "Eternal League". In the future, the heavy products planned to be launched are "New Yitian Dragon Dragon", "Shanhai Floating Dream Records", "The West of the Eight Dragon Gods", "Monster True Story 2", "Fairy Sword Qixia: New Start", "Douro Continent", "Douro Continent", " "Tomb Raider" and so on.

"From the perspective of subsequent products, Kai Ying deliberately broaden the non -legendary IP matrix." An executive of a Shanghai game industry listed company commented on this.

Huang Yifan/Wen

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