NetEase has reportedly filed a lawsuit against Blizzard Entertainment, after the long-term partners ended their China licensing deal earlier this year.
Activision Blizzard, which had held licensing agreements withNetEasesince 2008,pulled its games from the Chinese market in January.
The move left local players unable to access titles, includingWorld of Warcraft, Hearthstone, Warcraft III: Reforged,Overwatch, the StarCraft series, Diablo 3, and Heroes of the Storm.
Now, according to Chinese publicationSina Technology(viaWoWhead), NetEase has filed a lawsuit against Blizzard, seeking ¥300 million Yuan (roughly $43.5 million USD) to cover refunds for discontinued games and services.
NetEase is reportedly also demanding compensation for unsold merchandise inventory and deposits on undeveloped games, in addition to “unequal provisions favoringBlizzard Entertainment” in the licensing agreements between the pair.
Update25th Apr 2023 / 1:02 pm
Activision Blizzard provided the following comment on this story:
“We haven’t received the lawsuit yet, but we are confident we aren’t in breach of any licensing agreements. The terms NetEase appears to be complaining about reflect standard industry practice and have been mutually-beneficial for years.
“While this persistent campaign by one former partner is disappointing and puzzling, it’s important to note that we have enjoyed nearly two decades of positive experiences operating in China, and remain committed to serving players and protecting their interests.”
Days before Blizzard’s games went offline in China,NetEase tore down a World of Warcraft statue outside its headquartersin an apparent symbolic gesture aimed at Blizzard, and even streamed the demolition via one of its official game channels.
According to aNew York Timesreport, simmering tensions between the long-term partners over a license renewal came to a head during a conference call last October.
During the conversation, which was conducted at times through translators,Activisionexecutives reportedly felt that NetEase CEO William Ding had threatened to sway the Chinese government to either block or supportMicrosoft’s proposed acquisition of Activision Blizzarddepending on the outcome of the negotiations.
Other sources told the publication that this had never been NetEase’s intention and was in fact simply a misunderstanding.
