A South Korean court has ruled partially in favor of Nexon in its trade secrets lawsuit against Ironmace over the game Dark and Darker, ordering the smaller studio to pay 8.5 billion won ($6.4 million) in damages.
The court ruled on Feb. 13 that while Dark and Darker did not infringe on Nexon’s copyright for an unreleased project, Ironmace did use internal planning documents and source code without authorization.
Nexon welcomed the decision, saying in a statement that the court’s recognition of its full damages claim underscored the importance of fair market competition. The gaming giant added that it plans to appeal the ruling for further legal review.
Beyond the civil lawsuit, Nexon said it has also pursued criminal action against Ironmace and its employees for alleged trade secret misappropriation, copyright violations, and breach of trust.
Ironmace, for its part, emphasized that the ruling confirmed Dark and Darker does not violate Nexon’s intellectual property rights. The company said it respects the court’s decision and will review the ruling before deciding whether to appeal.
The lawsuit stems from allegations that former Nexon employees took internal project materials and source code to develop “Dark and Darker,” a medieval fantasy game. Ironmace, founded in October 2021 by CEO Terence Park Seung-ha and former Nexon developers, now has a staff of about 120 to 130.
Nexon has argued that Ironmace’s game closely resembles its own project and that the studio systematically replicated its work. Ironmace has countered that Dark and Darker follows common industry conventions and is an independent creation. Even after a court rejected Nexon’s injunction request to suspend the game earlier this year, concerns grew when Ironmace secured a mobile licensing deal with Krafton to expand its business.
While the ruling clarifies that Dark and Darker itself does not infringe copyright, it establishes a precedent for trade secret protection in the gaming industry. Legal experts note that while copyright disputes typically require near-identical replication, trade secret violations can be established based on unauthorized use of internal documents alone.
The verdict is expected to have wide-ranging implications for the industry. Major gaming companies are likely to tighten security measures during development, and legal scrutiny of new projects created by former employees could increase.
For smaller studios and independent developers, the ruling may raise concerns about hiring talent from major firms due to potential legal risks. One industry insider said the case could discourage developers from working on similar genres after switching companies out of fear of trade secret lawsuits.
Both Nexon and Ironmace are considering appeals, leaving the lawsuit’s final outcome uncertain. Meanwhile, a separate criminal investigation could further impact the civil case, depending on whether prosecutors find grounds for additional charges.
“This case raises a critical question about how much creative work developers can take with them when leaving a company,” said one gaming industry official. “The ruling signals that legal battles between major publishers and smaller studios could become even more intense.”
