On February 21, 2025, the Guangdong High People’s Court successfully facilitated a mediation in the copyright and unfair competition dispute between the well-known game Pokémon and the mobile game Pokémon: Re-Edition. According to the official WeChat account of the Guangdong High People’s Court, as of February 18, 2025, the defendant, Guangzhou Maichi Network Technology Co., Ltd., and its subsidiary, Horgos Fangchi Network Technology Co., Ltd., publicly issued an apology statement and fully complied with the terms of the settlement agreement.
[Case Background]
Since July 2015, Guangzhou Maichi Network Technology Co., Ltd. and its subsidiary Horgos Fangchi Network Technology Co., Ltd. have operated the mobile game Pokémon: Re-Edition. This game was sued by The Pokémon Company, a Japanese corporation, for incorporating a significant number of design elements from Pokémon. In December 2021, the Pokémon Company filed a lawsuit with the Shenzhen Intermediate People’s Court, accusing the defendant of infringing its copyright and engaging in unfair competition.
During the first instance trial, the court determined that the core elements of the defendant’s game, such as the Pokémon characters, main character, and maps, were highly similar to corresponding elements in Pokémon, with some being nearly identical. The court also found that various combinations of game elements and the numerical system in the defendant’s game were comparable to those of the original Pokémon game. The court concluded that the high degree of similarity in the narrative expressions between the two games constituted copyright infringement. Specifically, the defendant’s game infringed upon The Pokémon Company’s copyright under Article 10(1)(5), Article 12, and Article 14 of the Copyright Law, which cover the rights of reproduction, dissemination via information networks, and adaptation. Furthermore, the court ruled that the defendant’s actions in operating and promoting the game violated Articles 2 and 8(1) of the Anti-Unfair Competition Law, thus constituting unfair competition. As a result, the first-instance court ordered Guangzhou Maichi Network Technology Co., Ltd. to pay a total of 107 million RMB in compensation for economic losses and reasonable legal expenses.
[Mediation and Resolution]
After the ruling, Guangzhou Maichi Network Technology Co., Ltd. and Horgos Fangchi Network Technology Co., Ltd. filed an appeal, leading the case to the second-instance procedure. On December 18, 2024, the Guangdong High People’s Court held a public hearing on the case. On the basis of further investigation into the facts, the second-instance court narrowed the discrepancies between the parties on matters such as factual determination, legal application, and compensation calculation, providing an opportunity for mediation. Additionally, to ensure effective resolution of this international intellectual property dispute, the court leveraged its connection with the World Intellectual Property Organization (WIPO) Arbitration and Mediation Center to invite professional mediators to participate, achieving a seamless integration of judicial adjudication and specialized mediation.
Ultimately, the court facilitated a settlement agreement through a combination of a “model judgment” and “entrusted mediation”. According to the terms of the agreement, the defendants, Guangzhou Maichi Network Technology Co., Ltd. and Horgos Fangchi Network Technology Co., Ltd., acknowledged that their game Pokémon: Re-Edition had extensively used design elements from Pokémon, infringing upon its copyright, and engaging in unfair competition by exploiting the brand recognition and reputation of Pokémon. The defendants further acknowledged that their actions caused significant economic damage to The Pokémon Company and negatively impacted the brand image of Pokémon. Consequently, the defendants agreed to pay compensation of 107 million RMB and publicly issued an apology statement.
[Comment]
The successful mediation of this case underscores the important role of the Chinese judicial system in intellectual property protection. In recent years, China has made significant strides in enhancing intellectual property legal protections, improving judicial efficiency, and fostering innovation, particularly in the context of the rapid development of the digital economy and the gaming industry, where intellectual property disputes have become a common issue for businesses. This case demonstrates that, when dealing with international copyright disputes, courts can rely on international cooperation mechanisms and flexibly use mediation tools to effectively balance the interests of the parties involved, thus avoiding further damage to businesses caused by prolonged litigation.
For companies involved in intellectual property protection, particularly those in the gaming, software, and other innovative industries, this case provides several important lessons: first, strictly adhering to the principle of originality and avoiding infringement of others’ intellectual property is fundamental to a company’s long-term development; second, conducting timely legal compliance reviews, especially when engaging in cross-border cooperation or expanding into international markets, is crucial for ensuring the legality of copyrights, patents, and other intellectual property; finally, in the event of disputes, actively seeking alternative dispute resolution methods such as mediation can save time and costs, reduce legal risks, and help maintain the company’s brand image and market reputation.
As China continues to improve its intellectual property protection environment, businesses should place greater emphasis on managing and protecting intellectual property, enhancing legal risk awareness, and ensuring that their innovations and market competitiveness are not infringed upon.