SEGA Corporation has officially filed a lawsuit against Bank of Innovation (BOI), accusing the company of infringing patents related to gacha mechanics in its mobile games. The lawsuit, filed on September 30, 2024, demands 1 billion yen in damages and seeks the suspension of certain game programs, specifically focusing on popular titles Memento Mori and Genjuu Keiyaku Cryptract.
Background of the lawsuit
BOI, a Tokyo-based game developer known for its mobile game titles, has been operating since 2012. The company has released several successful games, including the long-running Genjuu Keiyaku Cryptract (2015-2023) and Memento Mori, released in 2022. According to the lawsuit, SEGA alleges that BOI has infringed five specific patents owned by SEGA, all related to game mechanics, particularly those used in the gacha and item synthesis systems.
SEGA contends that BOI’s games infringe these patents, which are commonly used in mobile games worldwide. BOI had previously proposed to resolve the issue through a licensing agreement, but SEGA declined, leading the company to opt to take the matter to court, resulting in the current litigation.
Details of the patents in question
The patents that SEGA alleges have been infringed include:
- Japan Patent No. 5930111.
- Japan Patent No. 6402953
- Japan Patent No. 6891987
- Japan Patent No. 7297361
- Japan Patent No. 7411307
These patents cover fundamental aspects of gacha mechanics, which allow players to obtain characters, items or skills in the game randomly through microtransactions. This system is not only key in the monetization of mobile games, but is also at the core of gameplay in titles such as Memento Mori.
SEGA's legal claims
In its lawsuit, SEGA demands:
- 1 billion yen in damages (approximately $6.7 million or €6.20 million) for patent infringement.
- The immediate suspension of the use of the patented technologies in BOI’s games, particularly affecting Memento Mori.
The claim for the ¥1 billion also includes a request for additional interest due to delays in compensation. SEGA has expressed concern over BOI’s continued use of the infringed technology, which could undermine SEGA’s position in the mobile gaming market.
Market reaction
BOI shares fell 17.86% on the Tokyo Stock Exchange following this press release, reflecting market concerns about the legal situation and its potential financial impact.
BOI's answer
BOI has acknowledged receipt of the lawsuit on October 21, 2024, and has stated that it will carefully examine the claims before proceeding with an appropriate response. Despite the legal dispute, BOI is committed to continuing the operation of Memento Mori, emphasizing that it will take the necessary steps to comply with the court decision, while ensuring uninterrupted service to its users.
The outcome of this lawsuit could have far-reaching implications for the mobile gaming industry, particularly in how gacha systems are implemented and licensed in the future.
You can see the official press release here.
