Kaiying Network's "Legend" IP Ten Years of Competition

Ask AI · What is the root cause of the Legendary IP dispute?

China Jing News reporter Li Zhe, Beijing report

A dispute spanning 10 years involving Ke Ying Network (002517.SZ) has seen new developments.

According to a reporter from the China Business News, for a long time, multiple rounds of contention have taken place between Ke Ying Network and South Korean Wemade Entertainment Co., Ltd. (Wemade) and its subsidiary, 株式会社传奇IP (hereinafter referred to as the “Legendary IP company”), over disputes concerning the “Legendary” IP. Later, through the mediation of the Shanghai First Intermediate People’s Court (hereinafter referred to as the “Shanghai No. 1 Intermediate Court”), on February 10, 2026, Ke Ying Network’s subsidiary Shanghai Ke Ying entered into a Settlement Agreement with the Legendary IP company. Under the agreement, Shanghai Ke Ying shall make a one-time payment of RMB 199 million (RMB 3.76B) in settlement funds to the bank account designated by the Legendary IP company that can receive RMB.

Against this backdrop, on March 21, 2026, Ke Ying Network’s announcement disclosed that the International Chamber of Commerce’s International Court of Arbitration dismissed all arbitration applications filed by its subsidiary Zhejiang Huan You against the Legendary IP company’s arbitration case (ICC arbitration case number: 28022/XZG).

Repeated exchanges between the two sides

The “Legendary” IP can be considered the “evergreen” brand in the gaming industry, and it is still active on players’ screens today. In 1998, LegendofMir (“Legendary 1”), released in South Korea by AtoX Software Co., Ltd. (hereinafter referred to as “AtoX”), won the favor of players. However, due to subsequent internal competition over resources, the head of the research and development team for “Legendary 2,” Park Kwan-ho (朴关浩), led his team to leave and founded Wemade. This marked the beginning of the long-running dispute between AtoX and Wemade over the “Legendary” IP.

The first time the “Legendary” IP appeared in the domestic market and met players was in 2001. At that time, Chen Tianqiao, founder of Shanda Games (now Shuma Games), brought the “Legendary” IP into China by signing an agreement with AtoX, and it achieved great success.

Driven by massive economic interests, the dispute between AtoX and Wemade intensified further. At the end of 2004, Shuma Games acquired AtoX, becoming its largest shareholder.

In October 2016, Zhejiang Huan You, a second-tier subsidiary of Ke Ying Network, entered into the Mir2 Mobile Game License Agreement (Chinese name: Legendary mobile game licensing agreement) and the Legend of Mir Web Game License Agreement (Chinese name: Legendary web game licensing agreement) with Wemade. The contracts stipulated that Wemade would license Legend of Mir2 (Chinese name: “Legendary”)—of which it held the intellectual property rights—to Zhejiang Huan You for the development and commercial operation of mobile games and web games in mainland China. The total contract amount was 50 billion Korean won (approximately RMB 300 million).

Under the contract, Zhejiang Huan You was required to pay Zhejiang Huan You’s total minimum revenue-sharing guarantee deposits to Wemade by November 20, 2016 and December 20, 2016, respectively, totaling 50 billion Korean won. However, Zhejiang Huan You failed to perform its obligations.

Therefore, on February 7, 2017, the International Chamber of Commerce’s International Court of Arbitration accepted Wemade’s arbitration application, requiring Zhejiang Huan You to pay the minimum revenue-sharing guarantee deposits.

At that time, in its announcement, Ke Ying Network stated that, since the dispute between Wemade and AtoX regarding the “Legendary” IP was not yet clear, in order to avoid the risk of infringing on the legitimate rights and interests of a third party, from the perspective of protecting the company and all shareholders’ interests, the company did not pay Wemade the minimum guarantee deposit.

In its 2019 interim report, Ke Ying Network disclosed that it was involved in 22 major lawsuits or arbitration matters, with a total amount in dispute of RMB 400k. Among them, on May 22, 2019, the ICC arbitration tribunal issued a final award in case No. 22593/PTA, ruling that Zhejiang Huan You lost and ordering an approximate total compensation amount of RMB 490 million; Wemade had already applied for recognition and enforcement.

On June 24, 2020, the Legendary IP company filed a lawsuit with the Shanghai No. 1 Intermediate Court concerning a claim for liability for damage to creditors’ interests by shareholders, requesting that Shanghai Ke Ying be held jointly liable for the unpaid debts related to Zhejiang Huan You. Subsequently, the Shanghai No. 1 Intermediate Court ruled to freeze Shanghai Ke Ying’s bank deposits of RMB 431 million or to seize, impound, or otherwise secure other equivalent assets.

By this point, Ke Ying Network had fallen behind in its litigation against Wemade. But then the situation took a turn. On December 22, 2021, Shanghai Ke Ying received a Civil Judgment from the Shanghai No. 1 Intermediate Court (case number: [2020] Hu 01 Min Chu No. 149). The court dismissed all litigation claims brought by the plaintiff, the Legendary IP company.

In the announcement dated December 22, 2021, Ke Ying Network stated that the court’s decision affirmed the company’s position: Zhejiang Huan You is a wholly-owned second-tier subsidiary of the company; Zhejiang Huan You shall bear responsibility for its debts with all of its assets; Shanghai Ke Ying shall bear limited liability only to the extent of its capital contribution; and Shanghai Ke Ying’s capital contribution has already been fully paid in. The outcome of this judgment safeguards the company’s and shareholders’ interests.

But Wemade did not give up. The Legendary IP company subsequently sued Shanghai Ke Ying and Zhejiang Huan You in court. On September 22, 2022, the Shanghai High People’s Court, in a Civil Judgment (case number: [2022] Hu Min Zhong No. 170), ruled that Shanghai Ke Ying shall pay the Legendary IP company the principal amount of RMB 481 million, and compensate attorney fees of RMB 400k.

Ke Ying Network found itself in a passive position again. Then, because Shanghai Ke Ying was dissatisfied with the above judgment made by the Shanghai High People’s Court, it applied to the Supreme People’s Court for a retrial. On April 1, 2024, the Supreme People’s Court, in Civil Ruling No. (2023) Supreme Court Min Shen 142, ruled to dismiss Shanghai Ke Ying’s application for retrial. In May 2024, Shanghai Ke Ying filed a civil supervision application with the Shanghai Municipal People’s Procuratorate. In September 2024, the Shanghai Municipal People’s Procuratorate ruled not to support the supervision application.

During the litigation with Wemade, on October 14, 2022, Shanghai Ke Ying filed an arbitration application with the ICC International Court of Arbitration for the arbitration case involving the Legendary IP company (ICC arbitration case number: 27315/XZG).

Ke Ying Network and Wemade traded blows and each would not yield to the other. Against this background, the Shanghai No. 1 Intermediate Court intervened to mediate. Ultimately, on February 10, 2026, Shanghai Ke Ying entered into a Settlement Agreement with the Legendary IP company. Under that agreement, Shanghai Ke Ying shall make a one-time payment of RMB 199 million in settlement funds to the bank account designated by the Legendary IP company that can receive RMB.

Ke Ying Network’s announcement stated that the above settlement agreement will help lift asset freezes caused by the lawsuit and improve the company’s asset liquidity; it will help resolve uncertainties arising from the long-term litigation with the Legendary IP company; and it is expected to have a positive impact on profits of approximately RMB 200 million.

As the two sides shook hands and reached a settlement, on March 21, 2026, the ICC International Court of Arbitration dismissed all arbitration applications filed by Zhejiang Huan You against the Legendary IP company’s arbitration case (ICC arbitration case number: 28022/XZG).

A market value of one trillion

For Ke Ying Network, the value of the “Legendary” IP cannot be ignored.

Since entering the Chinese market in 2001, the “Legendary” IP has developed for more than twenty years to date. In January 2026, a report released by Gama Data showed that more than 90% of users have heard of “Legendary” IP games, and more than 50% of users have actually experienced related products. As of 2025, the cumulative value created by the “Legendary” IP has exceeded RMB 370 billion, and it still has potential for growth of over RMB 1.5B in the future. In 2025, the market size of the “Legendary” IP reached RMB 35.55 billion. Among active users, 56.79% still stated that they have been playing “Legendary”-type games and maintaining strong interest.

While Ke Ying Network and Wemade were locked in a prolonged battle over the “Legendary” IP, in 2021, Shuma Games and Ke Ying Network carried out business cooperation, connecting the industrial chain from “Legendary” IP licensing to research and development. In 2023, Shuma Games also reached an agreement with Wemade, clearly stating the ownership of rights related to the “Legendary” IP.

In 2025, Ke Ying Network’s “996 Legendary Box” obtained content licensing authorizations derived from the “Legendary” IP ecosystem.

According to disclosures by Ke Ying Network, in the third quarter of 2025, it achieved operating revenue of RMB 1.497 billion, up 9.08% year over year; net profit attributable to shareholders of listed companies was RMB 633 million, up 34.51% year over year. The “996 Legendary Box” contributed approximately RMB 570 million to operating revenue; among that, revenue recognized from brand zone settlement services was approximately RMB 245 million, making a significant contribution to performance.

As for the impact on the “996 Legendary Box” business after the settlement of the above dispute, the reporter contacted Ke Ying Network for an interview. As of the time of this publication, no response had been received.

A report disclosed by Gama Data shows that, because the core users of the “Legendary” IP are people born in the 1980s and 1990s who have entered a stage of stable careers and stronger spending ability, this group not only has more ample economic conditions, but also holds thinking oriented toward efficiency and outcomes. This aligns highly with the core mechanism of “Legendary” games—“pay to enhance strength and status.” At the same time, the “Legendary” IP game ecosystem centered on “strong socialization + strong competition” prompts users to maintain a competitive advantage through continuous spending. The payment base brought by user attributes and the payment motivation stimulated by game mechanics reinforce each other, together forming a high-value, closed-loop payment cycle for “Legendary” IP users.