Gaming Industry IP Information: Tencent’s Light of Motiram goes darkish in settlement, the top of a 15-year Nintendo authorized battle, Sega sues soundtrack uploader, and extra | McDonnell Boehnen Hulbert & Berghoff LLP

The holidays could have been a time for many people to chill out, however the authorized groups within the gaming trade definitely stayed busy. 

Tencent’s Light of Motiram Goes Dark in Settlement 

We’ve been following the proceedings within the Sony v. Tencent lawsuit since our first situation, however it seems that the dispute has now lastly concluded. Video Games Chronicle (VGC) reported that Tencent and Sony have reached a confidential settlement over Tencent’s upcoming Light of Motiram sport. The lawsuit over whether or not Tencent had infringed Sony’s mental property referring to the Horizon franchise began in July 2025 and, previous to the settlement, was awaiting a choice on Tencent’s movement to dismiss. While the phrases of settlement are unknown, one end result was the quick elimination of the to-be-released sport from widespread on-line storefronts (e.g., Steam and Epic Games). It is value noting that the sport’s web site presently stays on-line, with a defunct hyperlink to the Steam web page nonetheless current, which means that Tencent has not completely deserted the brand new IP, however may have to revamp sure facets of the sport to keep away from any additional comparisons between the 2 properties.  

Legal Battle Spanning Four Console Generations Finally Comes to an End 

VGC additionally reported {that a} 15-year authorized battle between Nintendo and third-party Wii distant producer Nacon (then BigBen Interactive) has largely completed. The lawsuit, which started again in 2010, was filed in Germany and handled patents overlaying Nintendo’s Wii distant controllers. Nintendo would declare its first victory in 2011 when a German regional courtroom discovered that the patents had been infringed, however Nacon appealed and delayed a ultimate resolution for almost 14 years. However, this technique resulted in enhanced damages for Nacon, as curiosity owed has elevated the unique €4 million judgment to almost €7 million (equal to $4.7 million and $8.3 million USD). While Nacon can, and has, appealed the damages resolution, this marks one other win for Nintendo in relation to imposing its IP. 

Nintendo Successfully Defends Against Patent Infringement  

In a little bit of a swap up relative to the case above, Nintendo was placed on the defensive when responding to assertions of patent infringement by Gamevice, Inc., a producer of handheld consoles. Gamevice claimed Nintendo’s Switch sport console infringed a number of of Gamevice’s patents in the identical house (submitting fits in opposition to Nintendo in U.S. District Court and with the International Trade Commission (ITC)). The dispute was finally appealed as much as the U.S. Court of Appeals for the Federal Circuit, and a choice on enchantment was rendered by that courtroom on January 16, 2026. For particulars on how the case progressed, and the way Nintendo in the end prevailed on enchantment, see our longform evaluation on Patent Docs. 

Sega Sues Over Illegal Uploads of Video Game Soundtracks 

Abit.ee reviews that Sega has filed a lawsuit within the Southern District of Florida over allegedly illicit uploads of online game soundtracks to Spotify, Apple Music, and different streaming platforms. The alleged infringer, Jamarie Lindsey, recognized by their on-line deal with Ziodyne (a reference to a capability of the identical identify in Sega’s Shin Megami Tensei franchise), uploaded varied Sega online game soundtracks, together with the Persona 3 Reload and Shin Megami Tensei: Strange Journey soundtracks, previous to their official launch. While the internet hosting platforms have been fast to take away the releases, Sega seemingly needs to reply strongly to be able to deter others who is perhaps trying to reap the benefits of delays by releasing soundtracks early. Caught up within the lawsuit is the distribution platform DistroKid. DistroKid is utilized by impartial musical artists and helps such artists publish music to streaming platforms and handle royalties. However, on this case, DistroKid could have uncared for to confirm that the uploader owned the rights to the music they sought to publish. While DistroKid will not be a named defendant within the lawsuit, this motion by Sega could trigger the platform or different related third-party platforms to think about taking a extra lively position in verifying possession rights earlier than importing content material.  

While Lindsey’s importing of those soundtracks could satiate followers who’re desperate to have quick entry to full soundtracks, such uploads can simply disrupt well-laid advertising plans for rights holders who’re concentrating on particular launch dates. It is attainable that Lindsey could have felt empowered to behave because of the traditionally passive method sport builders usually take with online game soundtrack uploads. For instance, it is not unusual for rights holders to chorus from taking motion in opposition to events who’ve uploaded total soundtracks to YouTube earlier than an official soundtrack launch happens. While it’s attainable the rights holders are unaware of this observe, this appears unlikely. A extra possible (and worthwhile) clarification is that corporations discover it simpler to easily use YouTube’s content material ID system to grab any income from the unlicensed uploads, somewhat than having the video taken down. This lawsuit could mark a shift in how Sega needs to method its soundtrack releases and controlling entry to the music. Alternatively, the lawsuit could merely signify Sega taking a one-off motion in opposition to what it views as an excessively egregious act by a selected person. 

DMCA Notice Against Cyberpunk 2077 Mod Raises Questions About Mod Monetization 

A digital actuality (VR) expertise modder, recognized by their on-line deal with LukeRoss, has been topic to a Digital Millennium Copyright Act (DMCA) declare by Cyberpunk 2077 developer CD Projekt Red. LukeRoss sells a mod that permits for gamers who personal sure VR techniques to play Cyberpunk 2077 utilizing a VR framework. As reported by GamesIndustry.biz (primarily based partially on LukeRoss’s Patreon submit), the mod developer and the sport developer have been concerned in a authorized change over the mod’s availability. According to CD Projekt’s vice chairman of enterprise improvement, the sale of mods violates CD Projekt’s fan content material pointers (although CD Projekt did notice that non-compulsory donations can be wonderful). LukeRoss has confronted related points earlier than, with Take-Two Interactive (homeowners of rights to Grand Theft Auto and Red Dead Redemption) issuing related DMCA notices. 

LukeRoss, for his or her half, contests CD Projekt’s characterization of the work. The modder claims that the mods are impartial software program, suitable with many video games apart from Cyberpunk 2077, and that there’s nothing “derivative” within the product. Specifically, the modder claims that the software program was not developed with any code or property from CD Projekt’s video games. The DMCA’s guidelines surrounding interoperability, at the very least within the U.S., might be discovered below 17 U.S.C. § 1201(f), which is a subject we have lined within the previous. 

The proper of online game copyright holders to control modding of their video games is comparatively untested legally. The closest parallel, at the very least within the case of LukeRoss’s VR mod, could also be emulation, which has been discovered to be authorized within the U.S. below sure circumstances. For instance, in Sony v. Connectix, the U.S. Court of Appeals for the Ninth Circuit discovered that reverse engineering a gaming system’s bios was not a violation of copyright, even when the unique software program needed to be copied to facilitate the reverse engineering. However, the Connectix case is greater than 20 years previous, and more moderen instances like Nintendo v. Yuzu recommend sure limits to how an emulator might be developed and distributed. Ultimately, what rights CD Projekt and LukeRoss every have within the mod is probably debatable. However, preventing such a battle in courtroom would possible be pricey and time consuming. 

Further, the controversy round paid mods, specifically, has additionally been round for a very long time, with sure builders, corresponding to Rockstar, trying to create mod marketplaces to facilitate transactions between mod builders and customers. As this space of progress is being explored by builders, the need to make sure that the “official marketplace” is the one place to purchase and promote mods will turn out to be extra essential. What has occurred with LukeRoss could also be an early signal of main builders trying to insert themselves into the modding ecosystem, and evidently finally a number of lawsuits could also be wanted to reply excellent questions referring to the scope of management a developer has over a sport’s modding scene. 

Patent Pending: Interesting Innovations in Gaming 

Game corporations are repeatedly innovating, so we’ve highlighted a couple of methods during which they are experimenting with new know-how. For instance, a couple of fascinating Sony patents have been unveiled up to now few months: 

• VGC has discovered a newly printed Sony patent software (U.S. App. No. 18/779,536) for AI podcasts starring online game characters. The concept seems to be focused at discovering a novel and interesting approach of delivering information (e.g., new PlayStation sport releases, upcoming occasions, and many others.) by having the information be delivered by widespread online game characters. The characters can be personalized primarily based on the preferences of the person person (e.g., primarily based on video games the person has performed).

• Techpowerup reviews that Sony obtained a patent (U.S. Pat. No. 12,533,573, Issued January 27, 2026) for “buttonless” controllers that reap the benefits of contact inputs. The invention seems to be focused at permitting gamers to pull and alter the place of digital buttons on a contact show, permitting for absolutely customizable controllers with out the necessity for manufacturing customized faceplates to accommodate most popular button placement.

• Lastly, allaboutai has recognized one other software from Sony (U.S. App. No. 18/486,081), which had been comparatively unnoticed since April of final yr, aimed toward helping gamers throughout lively gameplay. The patent covers an “AI ghost” that could possibly present gamers who’re caught at troublesome, or maybe unclear, sections of a sport with discovering or finishing subsequent steps in development. Such AI ghosts could, for instance, display profitable, and probably adaptive, strategies of undertaking a process.

We will probably be maintaining an eye fixed out for different gaming patents or functions as they situation or turn out to be public. 

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