The lawsuit filed by Nexon against Ironmace regarding the alleged trade secret infringement of ‘Dark and Darker’ concluded in the first trial with a finding of partial responsibility for Ironmace. The court ruled on 13th that there was no basis to conclude that Dark and Darker infringed on Nexon’s unpublished project (P3) copyrights, while recognizing that there was a trade secret infringement involving unauthorized use of internal plans and source code during the development process, ordering Ironmace to pay 8.5 billion won in damages.
Regarding this ruling, Nexon stated, “We believe it is significant that the court recognized the full amount of 8.5 billion won in damages for the illegal infringement that undermines fair market competition,” and noted, “We plan to review the ruling in detail and seek a legal judgment from a higher court.” Additionally, they claimed, “Alongside the civil lawsuit, Ironmace and its associates have been referred for charges of trade secret misappropriation, copyright law violations, and breach of trust.”
Ironmace emphasized that “the currently serviced Dark and Darker game does not infringe upon any rights of the plaintiff Nexon” and highlighted that copyright issues have not arisen. The company also stated it would respect the court’s judgment and review specific responses, including an appeal, after receiving the ruling. They remarked, “While some liability for damages has been acknowledged, it is important that Dark and Darker has not been directly accused of copyright infringement by Nexon.”
This lawsuit began from allegations that Ironmace employees diverted plans and source codes while working at Nexon to develop a new medieval fantasy concept. Ironmace, founded in October 2021 by CEO Park Seung-ha and former Nexon developers, is a small game company that employed approximately 120 to 130 staff members as of last year.
Nexon claimed, “They organized the project and created a similar game,” and filed both civil and criminal lawsuits simultaneously from last year, while Ironmace contended it is “an independent new title that follows the general grammar of the genre.” Despite Nexon’s request earlier this year for an immediate halt to services, which was rejected, industry concerns grew as Ironmace expanded its business by entering into a licensing agreement with KRAFTON for a mobile version.
The first trial ruling clarified that Dark and Darker itself is not a 'copyright infringement game,' but the fact that it acknowledged approximately 8 billion won in liability for trade secret infringement illustrates whether the internal development assets of large game companies can be legally protected. Industry analysts indicated, "In copyright disputes, infringement is typically acknowledged only if the finished game is nearly identical, whereas for trade secrets, just uncovering 'unauthorized project materials' significantly raises the risk of damages."
In reality, this ruling may have considerable implications for the gaming industry as a whole. Large gaming companies may strengthen development process security and actively consider lawsuits against new titles released by employees after they leave.
Conversely, small developers and independent studios may hesitate to recruit personnel from larger companies due to concerns over legal risks. An industry representative noted, "The practice of collectively changing jobs to create similar genres is likely to be significantly curtailed," adding, "Even if there are only common elements at the level of ideas, a fear of potential trade secret infringements could foster a wary atmosphere."
Both Nexon and Ironmace are reviewing whether to appeal, leaving the resolution of the lawsuit uncertain. The ongoing criminal case by the prosecution may also influence the civil case depending on which charges are acknowledged. An industry insider remarked, “This case has raised important questions about how far one can go in taking a game they were developing,” and noted, “This ruling signals that the power struggle between large corporations and small developers could become even fiercer in the future.”