NetEase sues Blizzard

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  • Saka's Avatar
    Level 52
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    To those who follow World of Warcraft news, there's new chapter in the NetEase vs Activision Blizzard conflict. NetEase is a former partner of ActivisionBlizzard and publisher of its games in China. The cooperation lasted for 14 years until meeting end rather abruptly in January. So far the games have been down in China and no resolution for the future could be found. It has been reported that NetEase sued Activision Blizzard for ¥300 million Yuan (roughly $43.5 million USD), which is supposed to cover refunds to players and unsold goods.

    Sina Technology, a media conglomerate from China said this:

    Shanghai NetEase Network Technology Development Co. Ltd. filed a lawsuit in Shanghai against Blizzard Entertainment Ltd. for breach of the series license agreement, seeking a refund of 300 million RMB. The amount includes full refunds paid by NetEase in connection with discontinued games such as World of Warcraft, prepayments for the inventory of unsold games, and prepayment deposits for several undeveloped games. The case also involves World of Warcraft and other CN region game related agreements: contains a number of unequal terms and conditions in favor of Blizzard's unilateral rights, the legality and enforceability of the relevant provisions of the huge dispute.

    It is reported that the primary reason for NetEase to sue Blizzard is because Blizzard refused to assume the obligation of refunding players in the CN service and refused to pay NetEase the prepaid commission fee related to the CN service refund, involving an amount of nearly 100 million RMB. Since January 24, "World of Warcraft", "Hearthstone Legend", "Overwatch" and other Blizzard games service shutdown in CN, in order to maximize the protection of CN player's rights, NetEase already paid in full of more than 1.12 million players related to the refund applications for Blizzard games in CN.

    In addition, the lawsuit involves the "one-side clause" signed between Blizzard and NetEase, including the requirement that NetEase deliver a huge deposit for several games in advance, while Blizzard did not refund the relevant deposit when the relevant games were not developed.


    Currently, there isn't any more detail on this particular event available.

    The previous chapter of the conflict involved NetEase tearing down the Blizzard office in China, destroying a Gorehowl statue on a live stream (Gorehowl is a giant axe that belonged to one of the characters in World of Warcraft) and serving "Blizzard Green Tea". Apparently "Green Tea" in modern Chinese slang is a slur referring to a manipulative person keeping up the appearances of a nice and wholesome person, but actually rotten inside.
    Unamused Snarktooth. Advocate for hearing loss & accessibility. Person, friend and a terrible/terrific* artist.
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  • DoctorEldritch's Avatar
    Community Manager
    @Saka Blizzard seems to keep getting problems on all fronts, all with the exodus of talent staff, and this, too.

    Though while Blizzard seems deserving, I'd still want to say that tearing down offices and destroying statues is bad taste. And now I feel bad for green tea, it has many benefits for its name to be sullied by this sort of slang. The drink that actually deserves to be used this way is Skim Milk:

  • Saka's Avatar
    Level 52
    @DoctorEldritch As far as I know, the negotiations were not over when the office teardown happened. So destroying iconic stuff and making insults at blizzard definitely stands in contradiction to their claims that they were acting in good faith and very open to negotiations.

    Maybe they tried to get better contract terms and when that failed, they decided to jump the ship. It's possible, too, that Blizzard tried to change the contract too. The way the events went make me believe that NetEase wasn't innocent in there and the teardown was a publicity stunt for the upset Chinese players to make Blizzard the scapegoat.

    I've read a rumour that NetEase was attempting to use extortion regarding the Microsoft deal. But of course, Internet has all the wild stuff.🤔
    Unamused Snarktooth. Advocate for hearing loss & accessibility. Person, friend and a terrible/terrific* artist.
    *delete as appropriate
  • DoctorEldritch's Avatar
    Community Manager
    @Saka It does seem a bit like they smelled blood in the water. As Blizzard got into trouble with CEO allegations and then staff dissatisfaction (exodus was, after all, a result of a longer issue), they wanted to add that to the pile, too.

    Then again, who knows where the blame lies, probably a bit with everyone, as in most cases. It is all confusing a bit. And while big companies flex muscles at each other, it is the Green Tea who suffers a reputation blow.
  • Saka's Avatar
    Level 52
    @DoctorEldritch Maybe it's because green tea, while healthy, leaves tough stains on teeth that lead to tartar buildup?
    Unamused Snarktooth. Advocate for hearing loss & accessibility. Person, friend and a terrible/terrific* artist.
    *delete as appropriate
  • DoctorEldritch's Avatar
    Community Manager
    @Saka Hmm... By that analogy, sugar is more sinister. And yet sugar is doing alright for itself, it is used endearingly. I don't get how people come up with that slang these days.
  • Saka's Avatar
    Level 52
    @DoctorEldritch This story got even better, there was an update yesterday, but I was bedridden and didn't have enough stamina to post on the phone either.

    Apparently, Blizzard has not heard anything about NetEase suing them and made a statement on that.

    Sina Technology reported:
    Blizzard replied: "Blizzard has not received a lawsuit at this time, but we believe we have not breached any licensing agreements. The contract terms that NetEase is suspected to be dissatisfied with involve standard industry practice and have been mutually beneficial to both parties over the years. While we are disappointed and confused by these ongoing actions, it is important to note that the nearly two-decade operational history in China has been very positive and enjoyable, and we remain committed to serving and protecting the rights of our local players."

    Apparently, the court documents were misfiled and NetEase was listed as a side suing Blizzard, when actually they were being sued themselves, too! It is an unrelated third party, apparently an unhappy gamer, who already tried to sue Blizzard for game time refunds before. Due to NetEase being listed as the party suing Blizzard, it got picked up by media.

    More details can be found here: https://www.wowhead.com/news/netease...amer-is-332591
    Unamused Snarktooth. Advocate for hearing loss & accessibility. Person, friend and a terrible/terrific* artist.
    *delete as appropriate
  • DoctorEldritch's Avatar
    Community Manager
    @Saka Oh yes, indeed! @Liue and I were talking about this whole Blizzard situation after the game night yesterday, and he found some information about that. This is what he wrote to me:

    Yang Jun vs. the World
    So who exactly is Yang Jun? Based on the initial story, you might have thought he was some sort of legal council, but it turns out he's just a disgruntled gamer and this isn't his first, second, or even third time taking the gaming giants to court.

    It turns out Jun previously sued NetEase and The9 in 2009, 2010, and most recently 2019 over World of Warcraft game time, seeking ¥2,000 Yuan (about $288.90 USD) in refunds in a case which was swiftly dismissed. Like many suits seen in the United States, he's taken his fight directly against the companies, but these suits often don't go anywhere unless they manage to attract widespread attention. In this case, heightened tensions of Chinese gamers cut off from their favored pastimes highlighted the case, and the misfiling managed to mislead... well everyone, into believing it to be a battle between gaming juggernauts NetEase and Blizzard - former partners now at each other's throats over lost profits! It certainly sounds petty enough to be true.

  • DoctorEldritch's Avatar
    Community Manager
    But that makes me wonder how come the office was dismantled, the Gorehowl statue destroyed and Green Tea brewed? Surely you need more than one angry gamer to do that?
  • Saka's Avatar
    Level 52
    @DoctorEldritch Well, NetEase not suing (at least for now) doesn't mean that the cooperation with Blizzard ended on amicable terms.
    Unamused Snarktooth. Advocate for hearing loss & accessibility. Person, friend and a terrible/terrific* artist.
    *delete as appropriate