NetEase Subsidiary Sues Blizzard, Demanding Return of $43.5M

Shanghai Wangzhiyi Network Technology, a subsidiary of Chinese web firm NetEase, not too long ago filed a lawsuit in opposition to Blizzard Entertainment for violating a sequence of licensing agreements in Shanghai, demanding the latter to return 300 million yuan ($43.5 million) in arrears, based on a report by 36Kr on April 24.

According to a report by Yicai, this quantity consists of refunds associated to video games discontinued within the Chinese mainland reminiscent of “World of Warcraft” that Wangzhiyi has already totally paid, prepayments for unsold recreation stock, and pay as you go ensures for a number of undeveloped video games. The case additionally includes a number of unequal phrases that favor Blizzard’s unilateral rights within the related agreements of video games operated in China reminiscent of “World of Warcraft,” and there’s controversy over the legality and enforceability of these phrases.

SEE ALSO: NetEase’s Blizzard Game Refund Application Channel in China Attracts Nearly 1M Users

The main purpose why Wangzhiyi sued Blizzard was that the American online game developer refused to bear the duty of refunding Chinese gamers and refused to pay advance fee charges associated to service refunds. Insiders stated that after “World of Warcraft,” “Hearthstone,” “Overwatch,” and different Blizzard video games have been suspended from working on China’s servers on January 24, Wangzhiyi had already totally refunded greater than 1.12 million gamers.

Public info exhibits that Wangzhiyi, who initiated this lawsuit, is NetEase‘s native staff accountable for working Blizzard video games. Previously, it was reported that this staff had practically 100 staff with most being operational employees. Currently, solely ten staff stay accountable for post-event work.

Earlier disputes between the 2 corporations started on November 17, 2022, when each companies issued statements saying they failed to achieve an settlement on renewing their cooperation by negotiations and would terminate their partnership after the settlement expired.

SEE ALSO: NetEase Expresses Strong Dissatisfaction With Blizzard’s Game Agreement Termination

In an announcement on the time, Blizzard stated video games together with World Of Warcraft, WarCraft III: Reforged, Hearthstone, and Overwatch would cease working in China from 0:00 on January 24, 2023.

On February 1, 2023, shortly after the operation suspension, Wangzhiyi issued an announcement concerning refunds for Blizzard video games. The assertion clarified that gamers who’ve recharged however not used digital foreign money or recreation providers can apply for a refund for Blizzard recreation merchandise operated by Shanghai Wangzhiyi within the Chinese mainland which can be not operational. This coverage was efficient from 11 am on February 1.

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