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The 'Lineage' series, regarded as a representative intellectual property (IP) in the gaming industry, is now in a situation where it is difficult to expect legal protection. NCSOFT lost a copyright infringement lawsuit against Kakao Games, leading to a new phase in the copyright controversy surrounding Lineage-style MMORPGs (massively multiplayer online role-playing games). This ruling is expected to have significant implications not only for NCSOFT's IP protection strategy but also for the domestic gaming industry as a whole.

◇ NCSOFT prepares for second trial appeal... Legal experts say 'low chances of winning'

According to the gaming industry on the 9th, NCSOFT is internally preparing to appeal the second trial against Kakao Games. However, legal experts and industry professionals foresee low chances of success in the second trial as well.

Earlier, the Seoul Central District Court's Civil Division 63 dismissed all claims made by NCSOFT in the copyright infringement and unfair competition lawsuit against Kakao Games and its subsidiary XL Games on the 23rd of last month. The court ruled that it was difficult to view 'ArcheAge War' as having unlawfully copied the content and systems of 'Lineage 2M.'

Attorney Kim Kyung-hwan from the law firm Minhue stated, 'This ruling indicates that it is not necessarily the inadequacy of the domestic gaming copyright protection system, but rather that NCSOFT failed to sufficiently prove the elements that should be legally protected.' He added, 'The main systems of MMORPGs are typical elements already used in numerous games, making it difficult for a specific corporation to receive exclusive protection over them.'

NCSOFT Pangyo R&D Center building./Courtesy of NCSOFT

This ruling has led to discussions regarding the domestic gaming copyright protection system. The MMORPG genre fundamentally shares characteristics of utilizing typical systems. The court also emphasized this point, stating that 'class systems, item enhancement methods, and PvP structures are already common design elements found in prior games, and no specific game company can claim exclusive protection for them.'

Kim Chan-dong, Head of Team at the Korea Copyright Commission, noted, 'The level of copyright protection in domestic games is on par with other industries and cannot be regarded as particularly vulnerable,' while also stating that 'it is common in the gaming industry for games developed after an employee's departure to share similarities with their previous company's games.'

He further commented, 'This issue necessitates improvements in industry ethics and awareness concerning the protection of trade secrets rather than just legal reforms,' adding that 'it is frequent for former developers to create similar games based on their previous company's know-how, yet it is challenging to legally prevent this perfectly.'

◇ MMORPG development barriers lowered, but revenue model remains unclear

The most significant change this ruling brings is that the legal risks associated with developing 'Lineage-like' games have decreased. In the past, NCSOFT's proactive legal responses meant that smaller gaming companies had to be cautious in developing Lineage-style MMORPGs. However, if this ruling sets a precedent, there may be changes to the game development environment.

Conversely, considering the development difficulty and operational expenses of MMORPGs, there are analyses suggesting that this ruling will not merely lead to an influx of 'Lineage-like' games. Given the server maintenance, content updates, and operational costs, sustaining long-term operations is difficult for non-large corporations.

In the past, sales from probability-based items supplemented this, but with recent government regulations tightening on probability-based business models, the sustainability of these businesses has become uncertain.

Kim Jeong-tae, a professor in the Department of Game Studies at Tongyang University, said, 'While it is true that this ruling has lowered the development barriers for smaller game companies in MMORPGs, whether new titles will actually flood the market remains to be seen,' adding, 'Due to regulatory pressures on probability-based revenue models, it is challenging for MMORPGs to generate profits as they once did.'

He stressed, 'Simply creating games like Lineage repeatedly does not guarantee success; developing new content and service models competitive in the global market is essential.'