Court Rules ‘Dark and Darker’ Did Not Violate Nexon’s Copyright but Orders Ironmace to Pay 8.5 Billion Won for Trade Secret Infringement

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A South Korean court has ruled that Ironmace did not infringe on Nexon’s copyright when developing Dark and Darker, rejecting the publisher’s claims that the game was built using stolen data from Project P3. However, the court sided with Nexon on trade secret violations, ordering Ironmace to pay 8.5 billion won ($6 million) in damages.
Key Ruling Details

No Copyright Infringement: The Seoul Central District Court ruled that Dark and Darker does not violate Nexon’s copyright protections over Project P3, a game that was under development at Nexon until June 2021.
Trade Secret Violation Confirmed: The court determined that Ironmace misused proprietary Nexon data, siding with the publisher’s claims that information related to Project P3 was leaked and used in Dark and Darker’s development.
Financial Penalty: Ironmace must compensate Nexon 8.5 billion won, with an initial 1 billion won due in March 2024 and the remaining 7.5 billion won accruing a 12% interest penalty starting in June 2024.

Background of the Dispute

The legal battle, which began in August 2021, centered around accusations that former Nexon employees, including lead developer Choi, transferred sensitive data from Project P3 to external servers before leaving the company to form Ironmace. Nexon argued that Dark and Darker was a direct derivative of Project P3, using stolen source code and assets.

While the court rejected copyright infringement claims, the ruling acknowledges that Nexon’s internal project data was improperly taken and used, leading to the substantial damages awarded.

Industry Impact

This ruling reinforces the difficulty of proving direct copyright infringement in video game development, especially when similarities between projects stem from general game mechanics rather than explicit asset copying. However, the verdict also underscores the legal risks involved when former employees create new projects that resemble past work, as trade secret violations can still result in major financial penalties.

Ironmace, which has been locked in legal disputes with Nexon both in South Korea and the United States, can finally relax a little as the game is no longer in imminent danger of being shut down. Ironmace will need to pay 8.5 billion Won though ($6 million)

Meanwhile, Nexon’s legal strategy focusing on trade secret claims rather than copyright may set a precedent for how gaming companies pursue similar cases in the future.