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The Pokémon Company Reaches Settlement in IP Infringement Lawsuit in China
posted on by Crystalyn Hodgkins
The Pokémon Company announced on Wednesday that it has reached a settlement with Chinese video game operator Guangzhou Maichi Network Technology Co., Ltd. regarding a game app titled Pocket Monster: Remake (口袋妖怪：复刻. The game's alias is: "The Pocket Journey" ("口袋之旅").
The Pokémon Company had filed the lawsuit with the Shenzhen Intermediate People's Court in Guangzhou Province in December 2021 claiming Guangzhou Maichi Network Technology Co., Ltd. had infringed on its intellectual property rights and engaged in unfair competition. The settlement agreement is between The Pokémon Company; Guangzhou Maichi Network Technology Co., Ltd.; and the latter's subsidiary Khorgos Fangchi Network Technology Co., Ltd. The High People's Court of Guangdong Province was involved in guiding the matter.
As part of the settlement Guangzhou Maichi Network Technology Co., Ltd. and Khorgos Fangchi Network Technology Co., Ltd. issued an apology statement. The Pokémon Company provided an English translation of the statement for reference purposes.
In the statement, the two Chinese companies stated they launched and operated the game since July 2015.
In an initial ruling, the Chinese companies were ordered to pay 107 million yuan (about US$14.7 million). A second trial was held on December 18, and all the companies involved reached a settlement on compensation. The letter does not specify if the compensation remained the originally ordered 107 million yuan or not.
The two Chinese companies stated they realized their acts had violated laws, as their game extensively used design elements from the Pokémon video game franchise. The companies apologized to the The Pokémon Company, rights holders, players, consumers, and the general public. The Chinese companies added what they did caused significant economic losses to the rights holders of the Pokémon franchise, and the companies paid an economic price and incurred reputational damage, and will not infringe upon any IP rights or interests of the Pokémon franchise in the future.
The companies also stated the referenced game has already been shut down and removed from the market.
The Pokémon Company added it "will continue to take all necessary steps to protect its intellectual properties, to enable its users worldwide to enjoy all Pokémon contents with complete peace of mind."
Nintendo and The Pokémon Company filed a patent infringement lawsuit against Palworld developer Pocketpair at the Tokyo District Court on September 18. The suit claims that the game infringes on Nintendo and The Pokémon Company's patent rights, and seeks an injunction against infringement as well as compensation for damages.
Sources: The Pokémon Company, 4Gamer (楽器)
