Kakao Games Faces 'Plagiarism Controversy' Ahead of IPO

[Asia Economy Reporter Bu Aeri] Kakao Games, which is preparing for an initial public offering (IPO) next month, has become embroiled in a plagiarism controversy.

Im Taeyoung, former CEO of Goblin Bet and the patent holder of the game 'Tigrang Time,' recently filed a patent scope confirmation trial against Kakao Games with the Patent Trial and Appeal Board. Im claims that Kakao Games' service 'Friends Time' infringes on the patent of 'Tigrang Time.' In a phone interview with Asia Economy on the 11th, Im stated, "There are too many similarities in the game structure, such as the progress method and revenue model, between Tigrang Time and Friends Time."

Kakao Games' 'Friends Time' is a game where players compete in rock-paper-scissors matches and quizzes, with the final winner receiving a prize of 1 million won. Kakao Games launched Season 1 from September last year to January this year, and has been servicing Friends Time Season 2 since June. 'Tigrang Time' was released in 2012 and is currently no longer in service.

Im argues that 'Tigrang Time' and 'Friends Time' share similarities such as ▲ pooling funds together and awarding the entire 1 million won prize to the winner ▲ a rock-paper-scissors game format where ties result in elimination, which leads him to believe that Kakao Games has infringed on his patent. Im is also preparing additional lawsuits regarding criminal charges, civil suits, and copyrights.

In response, Kakao Games stated, "After review by legal and patent firms, we have determined that there is no infringement of copyright or patent rights as claimed by the former CEO," fully denying the related allegations. They added regarding future responses, "We intend to respond firmly through legal means to protect our legitimate rights to the service."

Some industry insiders believe it will be difficult to prove the patent infringement claimed by Im. An industry source said, "It is generally not easy to prove patent infringement," adding, "Moreover, it is a delicate situation that the game, which has ended its service, is raising issues against Kakao Games ahead of its IPO."

Kakao Games, the first Kakao subsidiary to go public, submitted a securities registration statement to the Financial Services Commission on the 3rd to list on the KOSDAQ market and has begun the formal public offering process. Demand forecasting for institutional investors will be conducted on the 26th and 27th, followed by subscription for general investors on the 1st and 2nd of next month, with the listing scheduled for September.