Gaming NetEase Files Lawsuit Against Blizzard Entertainment Seeking $43.5 Million in Refunds (Update: A gamer filed a lawsuit, not NetEase)

[tom_mai78101]

Former Chinese publishing partner NetEase has filed a lawsuit against Blizzard Entertainment, seeking ¥300 million Yuan (roughly $43.5 million USD) in refunds for discontinued games and services to more than 1.12 million players since the server shutdown last January.

As reported by Chinese media conglomerate Sina Technology, the long-time publishing partner is suing Activision Blizzard over a violation of licensing agreements - demanding compensation for refunds to players, as well as unsold merchandise inventory and deposits on undeveloped games. The suit also includes what NetEase is calling several "unequal provisions favoring Blizzard Entertainment" in the licensing agreements between the two companies, such as bet-on agreements and large sum deposits by NetEase in order to insulate Activision from risk.

Shanghai NetEase Network Technology Development Co. Ltd. filed a lawsuit in Shanghai against Blizzard Entertainment Ltd. for breach of the series license agreement, seeking a refund of 300 million RMB. The amount includes full refunds paid by NetEase in connection with discontinued games such as World of Warcraft, prepayments for the inventory of unsold games, and prepayment deposits for several undeveloped games. The case also involves World of Warcraft and other CN region game related agreements: contains a number of unequal terms and conditions in favor of Blizzard's unilateral rights, the legality and enforceability of the relevant provisions of the huge dispute.

It is reported that the primary reason for NetEase to sue Blizzard is because Blizzard refused to assume the obligation of refunding players in the CN service and refused to pay NetEase the prepaid commission fee related to the CN service refund, involving an amount of nearly 100 million RMB. Since January 24, "World of Warcraft", "Hearthstone Legend", "Overwatch" and other Blizzard games service shutdown in CN, in order to maximize the protection of CN player's rights, NetEase already paid in full of more than 1.12 million players related to the refund applications for Blizzard games in CN.

NetEase Files Lawsuit Against Blizzard Entertainment... Or Did They? New Updates

Former Chinese publishing partner NetEase has filed a lawsuit against Blizzard Entertainment, seeking ¥300 million Yuan (roughly $43.5 million USD) in refunds for discontinued games and services to more than 1.12 million players since the shutdown last January.

www.wowhead.com

 

[tom_mai78101]

NetEase Isn't Suing Blizzard - A Disgruntled Gamer Is

Following yesterday's story that former licensing partner NetEase was allegedly suing Blizzard Entertainment for $43.5 million in refunds, Sina Technology has since reported a response from Activision Blizzard, stating "Blizzard has not received the relevant complaints, but we believe that we have not violated any licensing agreements."

Blizzard replied: "Blizzard has not received a lawsuit at this time, but we believe we have not breached any licensing agreements. The contract terms that NetEase is suspected to be dissatisfied with involve standard industry practice and have been mutually beneficial to both parties over the years. While we are disappointed and confused by these ongoing actions, it is important to note that the nearly two-decade operational history in China has been very positive and enjoyable, and we remain committed to serving and protecting the rights of our local players."

So where did this confusion come from? How did Chinese media manage to report a lawsuit against Activision Blizzard without Activision Blizzard even knowing about it? After a little bit of research, we've discovered conflicting court documents which paint a confused, yet telling picture.

NetEase Isn't Suing Blizzard - A Disgruntled Gamer Is

Following news that NetEase was suing Blizzard Entertainment for $43.5 million in refunds, Activision Blizzard responded by stating no complaints have been received. We've since discovered that NetEase isn't suing Blizzard at all - a disgruntled gamer is.

www.wowhead.com

So, there is a mix-up somewhere.