The copyright and trade secret infringement lawsuit over "Dark and Darker" between Nexon Korea and Ironmace, which began in 2021, is nearing its end after four years. The appellate trial is the final step to wrap up both sides' arguments, and once pleadings conclude, a ruling is typically handed down within a month, putting a conclusion within this year in view. Even if the case is taken to the Supreme Court, absent legal error, the lower court's ruling is likely to stand, so the second-instance verdict is expected to be effectively treated as the final decision.
According to the industry on the 22nd, the Seoul High Court will hold the final hearing in the appellate trial on the morning of the 23rd in the Dark and Darker copyright and trade secret infringement lawsuit between Nexon and Ironmace. After this hearing, the court plans to set a date for the ruling, and depending on the outcome, the four-year battle between Nexon and Ironmace is expected to effectively come to a close.
The dispute began in 2021 when Nexon filed civil and criminal suits, alleging that key developers of its unreleased project "P3" leaked internal data, founded Ironmace, and produced Dark and Darker based on it. The person named as defendant is Choi Joo-hyun, then P3 Head of Team and now Ironmace CEO and director. Nexon argued that before leaving, CEO Choi took out about 2,700 build files and source code without authorization.
In the first trial in Feb., the court found that Ironmace had infringed Nexon's trade secrets and ordered damages of 8.5 billion won. However, it did not accept the claim that Dark and Darker infringed P3's copyright, saying that a game's genre or systemic structure belongs to the realm of ideas and is not protected by copyright. The court also dismissed Nexon's request to ban service, citing insufficient evidence of direct copying of code or art assets.
Both sides appealed. Nexon appealed on the grounds that, in addition to trade secret infringement, substantial copyright infringement should be recognized, while Ironmace countered that the basis for presumed damages was unclear. In the appellate trial, the clash intensified to the point where both sides presented live demonstration videos and held game comparison sessions. Nexon said, "Many of the 3D character models in P3 and Dark and Darker are identical, and the width of the door asset matches down to the sixth decimal place," arguing that "P3's asset was used as is." Ironmace, by contrast, said, "The detailed elements such as lighting, monsters, and traps are entirely different," and argued that "Dark and Darker is an independently developed result."
After the first trial ruling, Dark and Darker was abruptly delisted from the global game platform Epic Games, Inc. Store, and the mobile version under development by KRAFTON also ended its licensing agreement with Ironmace. The market assessed that "as legal uncertainty dragged on, partner companies moved to manage risk."
Ironmace has also continued to take a business hit. According to the audit report, operating loss in 2024 was 1.8 billion won, turning to a loss from a profit the previous year, while revenue fell 24% to 26.8 billion won. Net loss reached 5.7 billion won, and the first-trial damages were reflected as provisions for litigation, increasing the financial burden.
Ahead of the appellate trial, Ironmace began a reorganization. Co-founder Director Choi Joo-hyun was appointed CEO, and former CEO Park Seung-ha was appointed president, separating the development and management lines. Ironmace said it was a "structural reorganization to respond to changes in the global market," but the industry views it as "a move to strengthen the legal response framework."
Nexon is treating this lawsuit not as a simple corporate dispute but as an opportunity to set standards for development ethics and intellectual property protection in the game industry. In fact, when signs of data leakage from another unreleased project, "MX BLADE," were detected, Nexon continued legal action against the related startup game company.
Ironmace, on the other hand, argues that "Nexon did not properly support P3's development, and it was disbanded due to differences over the project's direction," and that "the team members simply came together to develop new ideas." Ironmace contends that "the success of Dark and Darker greatly fueled the conflict" and that this is "an excessive legal claim that infringes normal creative activity."
A game industry official said, "The Dark and Darker dispute will be a case that sets new standards across the domestic game industry beyond a single game, around creation, workforce movement, and protection of development assets," adding, "Given the industry's characteristic frequent movement of talent between corporations, the outcome of this ruling will directly affect future project operation methods and hiring practices."