Cygames and Konami Settle High-Stakes Umamusume: Pretty Derby Patent Lawsuit, Ensuring Game’s Stability

Major Legal Hurdle Cleared for Blockbuster Mobile Title

Tokyo, Japan – In a significant development for the global gaming industry, Cygames, the developer behind the immensely popular mobile game Umamusume: Pretty Derby, has officially announced an amicable settlement with Konami Digital Entertainment (KDE) regarding an ongoing patent infringement lawsuit. This resolution brings an end to a protracted legal battle that cast a shadow of uncertainty over one of Japan’s highest-grossing digital entertainment products, ensuring the continued operation and future development of the beloved ‘horse girl’ phenomenon.

The settlement, confirmed by Cygames in a statement, involves a payment of 4.5 billion yen (approximately 30 million USD) to Konami. Additionally, Cygames will establish a licensing agreement with Konami, though the specific terms of this agreement have not been publicly disclosed. This outcome is a crucial win for Cygames, allowing the company to fully focus on enhancing the player experience and expanding the Umamusume universe without the burden of looming legal challenges. For Konami, the settlement provides substantial compensation and reinforces the importance of intellectual property rights within the highly competitive mobile gaming market.

The Genesis of a High-Profile Intellectual Property Dispute

The lawsuit, initiated by Konami Digital Entertainment in March 2023, alleged that Cygames’ Umamusume: Pretty Derby infringed upon several of Konami’s patents related to game systems and mechanics. Konami’s filing sought damages exceeding 4.5 billion yen and requested an injunction against the production, use, and sales of the game. The core of Konami’s claims revolved around gameplay elements that they argued were too similar to patented features found in their own successful titles, particularly those in the sports simulation genre, such as the Powerful Pro Baseball series and the Jikkyō Powerful Soccer series, which feature character training and progression systems.

• Patent Infringement Allegations: Konami specifically pointed to similarities in the training simulation aspects, character development cycles, and competitive event structures within Umamusume.
• Unfair Competition Claims: Beyond patents, Konami also accused Cygames of unfair competition, implying that the alleged similarities gave Umamusume an undue advantage by leveraging established gameplay concepts.
• Industry Scrutiny: The case garnered significant attention across the Japanese and international gaming communities, as it highlighted the complexities of intellectual property protection in a rapidly evolving digital landscape where game mechanics often share foundational principles.

Umamusume: A Billion-Dollar Success Story Under Legal Cloud

Umamusume: Pretty Derby launched in February 2021 and quickly became a cultural phenomenon and a financial powerhouse. The game, which combines character collecting, training simulation, and competitive racing elements, has consistently ranked among the top-grossing mobile games globally, generating billions of dollars in revenue. Its innovative blend of anime-style aesthetics, engaging gameplay, and deep character customization resonated strongly with players, particularly in Japan.

The game’s meteoric rise made it an attractive target for legal scrutiny. Its substantial market share and unprecedented revenue streams meant that any allegations of IP infringement carried significant financial implications for both parties. The lawsuit created considerable anxiety among its dedicated player base and investors, who worried about potential disruptions to the game’s service or even its discontinuation.