Nexon Wins Partial Supreme Court Victory Against Ironmace in Trade Secret Misappropriation Case

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▲ Dark and Darker

Nexon announced on the 30th that the Supreme Court has finalized an appellate court ruling ordering Ironmace, former developer Choi, and CEO Park to pay ₩5.76 billion in damages in a lawsuit filed by Nexon for trade secret infringement and compensation.

The Supreme Court broadly recognized that the defendants, as joint tortfeasors, infringed upon trade secrets related to Nexon's unreleased project, 'P3.' The court reached this decision by classifying core game development materials, such as source code and build files, as protected trade secrets. Previously, the Seoul High Court had recognized the 'P3' program and data sources as trade secrets, calculating the contribution of these materials to the development of 'Dark and Darker' at 15% to determine the damages.

This final Supreme Court ruling marks a significant turning point in the long-standing legal battle between the two companies that began in 2021. Nexon filed the lawsuit alleging that Choi, who served as the team leader for 'P3' at Nexon's New Development Division, leaked core data to a personal server before leaving the company to establish Ironmace and develop 'Dark and Darker.' Following a criminal complaint against Choi for violating the Unfair Competition Prevention Act in August 2021, Nexon also filed a copyright infringement lawsuit in a U.S. court in 2023. At the time, 'Dark and Darker' faced severe turmoil, including being removed from the Steam platform, which forced the company to distribute test clients through external channels like torrents.

Regarding copyright infringement, the Supreme Court, like the lower courts, dismissed the claim on the grounds that there was no substantial similarity. However, because the court extended the protection period for trade secrets to two and a half years post-resignation and broadened the scope of what constitutes a trade secret, Ironmace has been held liable for a substantial amount in damages.

Commenting on the significance of the ruling, Nexon stated, "This Supreme Court decision reaffirms that the act of unfairly misappropriating company assets for profit will never be tolerated."

Regarding future legal actions, the company maintained a firm stance: "The recognition of core game development materials, such as source code, as trade secrets will serve as an important precedent for protecting the creative ecosystem. We expect this Supreme Court ruling to be fully considered in the ongoing criminal proceedings, leading to a just conclusion."

This article was originally written in Korean and translated with the help of NC AI. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. [Read Original]

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