Nexon Korea Corporation v. Ironmace Co Ltd

District Court, W.D. Washington·Decided August 17, 2023·No. 2:23-cv-00576·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON NEXON KOREA CORPORATION, a CASE NO. 2:23-cv-00576-TL Korean Corporation, ORDER OF DISMISSAL ON Plaintiff, v. GROUNDS OF FORUM NON CONVENIENS IRONMACE CO LTD, a Korean Corporation, et al. Defendants.

This case arises from a copyright dispute between a Korean video game development company and two of its former employees who left to start their own company. Dkt. No. 1 ¶ 1. The matter is before the Court on Defendants’ Motion to Dismiss on Grounds of Forum Non Conveniens (Dkt. No. 29) and Motion for Relief from the Initial Disclosure Deadline and for a Protective Order to Stay Discovery (Dkt. No. 44). Both parties requested oral argument (Dkt. Nos. 29, 38, 45), but the Court deems oral argument unnecessary to the disposition of this motion. See LCR 7(b)(4). Having considered the relevant record,1 the Court GRANTS the motion to dismiss and DENIES as MOOT the motion for miscellaneous relief. Nexon Korea Corporation (“Nexon”) and Ironmace Co., Ltd. (“Ironmace”) are two

Korean videogame companies currently engaged in a copyright dispute in Korea. Nexon is a large videogame developer that previously employed Defendants Terence Seungha Park (“Park”) and Ju-Hyun Choi (“Choi”) to develop a videogame referred to as “P3.” Dkt. No. 38 at 11. Choi and Park worked on P3 out of Nexon’s Korean offices. Dkt. No. 29 at 7. While employed, both Park and Choi individually signed agreements that selected Seoul District Court as the forum to hear work-related intellectual property disputes. Dkt. No. 31 at 208 (Exhibit 5) and 211 (Exhibit 6). They left the company before the P3 project was finished, and they allege that it was “nowhere near being released” at the time of their departure. Dkt. No. 29 at 7. Nexon asserts that, before departing, Choi stole source code from Nexon’s Korean servers and sent them to his private server. Dkt. No. 38 at 11. Defendants then formed Ironmace (collectively with Park and

Choi, Defendants). Id. Ironmace soon released “Dark and Darker,” which is a videogame in the same genre as P3 but with different features. Dkt. No. 29 at 8. Nexon alleges that Ironmace used the stolen source code to complete Dark and Darker, essentially rebranding P3 as the new company’s intellectual property, a point that Ironmace denies. Id. 1 Nexon filed a notice of intent to file a surreply pursuant to Local Civil Rule (“LCR”) 7(g), purportedly to move to strike declarations and related arguments included with Defendants’ reply briefing on the motion to dismiss. Dkt. No. 50. Nexon then filed a surreply brief that fails to raise any legally sufficient grounds for striking any portions of the reply brief or related materials. See Dkt. No. 53. Nexon’s arguments in support of its motion to strike are that Defendants raised certain arguments only in reply that they could have initially raised in their motion brief (id.), but this is because Defendants attempt to counter specific arguments Nexon makes in opposition to the motion to dismiss, as they are expected to do on reply. Id. Nexon does not claim that Defendants raise any arguments for the first time on reply that do not directly respond to Nexon’s arguments in opposition. The Court will therefore not consider the inappropriately superfluous briefing in deciding this motion to dismiss. Ironmace admits it implemented “playtests” of Dark and Darker to allow gamers in major gaming markets access to the game in advance of its official release, including in the United States. Dkt. No. 45 at 15. Ironmace has also specifically promoted the game in the U.S. market. Dkt. Nos. 39-3, 39-5, 39-10. Because of this, Nexon issued a “take down notice” to have Dark

and Darker removed from the popular gaming platform Steam. Dkt. No. 29 at 20. Ironmace subsequently sent a counter-notification to Valve, the Washington corporation that owns Steam, under the Digital Millennium Copyright Act (“DMCA”), 17 U.S.C. § 512. Dkt. Nos. 39-7, 39-8. These disputes led to parallel litigation occurring in Korea, as the Parties have sued each other in Suwon District Court. Dkt. No. 29 at 5. Nexon subsequently filed their complaint in this Court (Dkt. No. 1), and Defendants now move to dismiss on forum non conveniens grounds, arguing that the Korean litigation is an adequate and more convenient forum to resolve Nexon’s claims (Dkt. No. 29). Defendants also move the Court for relief from the initial case management order deadlines and discovery obligations pending resolution of the motion to dismiss. Dkt. No. 44.

A district court may dismiss a case where litigation in a foreign forum would be more convenient for the litigants. Piper Aircraft Co. v. Reyno, 454 U.S. 235, 250 (1981). However, the doctrine of forum non conveniens should only be employed sparingly. Boston Telecomms. Grp. v. Wood, 588 F.3d 1201, 1212 (9th Cir. 2009) (citing Dole Food Co. v. Watts, 303 F.3d 1104, 1118 (9th Cir. 2002)). In determining whether to dismiss a case on these grounds, courts will consider: (1) whether an adequate alternative forum exists; and (2) whether the balance of private and public interest factors weigh in favor of dismissal. Lueck v. Sundstrand Corp., 236 F.3d 1137, 1142 (9th. Cir. 2001). An adequate alternative forum is one where the defendant is amenable to service of process. Id. at 1143. The defendant must also show that the foreign forum

will provide the plaintiff with some remedy for their claims if merited. Id. The standard for adequacy is a low one. Tuazon v. R.J. Reynolds Tobacco Co., 433 F.3d 1163, 1178 (9th Cir. 2006). To weigh the interests of the parties, the following private-interest factors must be considered:

(1) the residence of the parties and the witnesses; (2) the forum’s convenience to the litigants; (3) access to the physical evidence and other sources of proof; (4) whether unwilling witnesses can be compelled to testify; (5) the cost of bringing witnesses to trial; (6) the enforceability of the judgment; and (7) “all other practical problems that make trial of a case easy, expeditious, and inexpensive.” Lueck, 236 F.3d at 1145 (quoting Gulf Oil Corp. v. Gilbert, 330 U.S. 501, 508 (1947)). The court must also weigh the following public interest factors:

(1) local interest of lawsuit; (2) the court’s familiarity with governing law; (3) burden on local courts and juries; (4) congestion in the court; and (5) the costs of resolving a dispute unrelated to this forum. Id. at 1147; Gulf Oil Corp., 330 U.S. at 509. These factors are weighed against each other in a balancing test to determine if they favor dismissal. Lueck, 236 F.3d at 1145. “[A] foreign plaintiff's choice of forum merits less deference than that of a plaintiff who resides in the selected forum, and the showing required for dismissal

is reduced.” Id. (citing Gemini Cap. Grp., Inc. v. Yap Fishing Corp., 150 F.3d 1088, 1091 (9th Cir. 1998)). When parties have agreed to a forum selection clause, the district court should normally honor that agreement except in extraordinary circumstances unrelated to the parties’

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Nexon Korea Corporation v. Ironmace Co Ltd, (W.D. Wash. 2023).

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