Tencent’s (OTCPK:TCEHY) (TCTZD) fully-owned subsidiary, Riot Games, has sued China-based mobile games developer Shanghai Moonton Technology for copyright infringement. Riot Games is the developer of the hit PC MOBA (Multiplayer Online Battle Arena) game League of Legends. Shanghai Moonton is the developer of the hit Android/iOS MOBA game Mobile Legends.
The case was filed in California last July 6. This is a serious thing for Tencent because the free-to-play League of Legends is its biggest earning PC game. Riot’s MOBA game revenue last year was estimated to be $1.7 billion. SuperData Research’s $1.7 billion estimate for League of Legends was only for the January-November 2016 period. It could be as high as $1.9 billion. December is the month when people get their 13th month pay and Christmas cash bonuses.
(Source: SuperData Research)
League of Legends persists as the world’s top-grossing PC game. Tencent cannot afford to let another Chinese developer creating (and profiting from) copycat mobile versions of League of Legends. Tencent is using the great American legal system to discipline its fellow compatriot firm Shanghai Moonton. I can't find the ownership details of Shanghai Moonton. But I think the people behind Shanghai Moonton are influential or protected citizens of the Middle Kingdom. Tencent and/or Riot has not sued in China, but in California.
(Source: Riot Games/United States District Court)
Can Riot Really Stop Shanghai Moonton?
Riot Games claimed Shanghai Moonton willfully copied the user interface, character and monster designs, and other graphic assets of League of Legends. I am not a lawyer, so here’s a screenshot of the preliminary statement of Riot Games’ legal complaint.
(Source: Riot Games/United States District Court)
Shanghai Moonton denied Riot Games' accusations. It said Mobile Legends is out of its own, independent, original design process. It also announced that it might take legal actions against media entities and business
