GAME OVER: Sony and Tencent have settled their dispute over Light of Motiram; Judge Corley’s staff has already closed the case

Context:

• Sony sued Tencent over its (unreleased) Light of Motiram game, asserting copyrights and trademarks. Originally, Sony wanted a preliminary injunction (PI) at the earliest opportunity, preferably still this year. But the first agreement that the two parties reached was to push the PI hearing, at which Tencent’s motion to dismiss would also have been addressed, into next year (October 30, 2025 games fray article).
• Subsequently, an agreement was reached to push the hearing back by another two weeks (or more, subject to when Judge Jacqueline Scott Corley of the United States District Court for the Northern District of California could find a window in her calendar) subject to Tencent making certain commitments that ensured the delay would not compromise Sony’s legal position (December 3, 2025 court order (PDF)). The parties agreed that “(a) the extended briefing schedule and later requested hearing date will not be used to argue that [Sony Interactive Entertainment] delayed in seeking a preliminary injunction, (b) there will be no new promotion or public testing of Light of Motiram during the pendency of the Motion for Preliminary Injunction, (c) the Light of Motiram release will not be moved up to before Q4 2027, and (d) the Tencent Entities will not seek expedited discovery in connection with the Motion for Preliminary Injunction.”

What’s new: Now the lawsuit as a whole has ceased to be. The stipulated (= agreed-upon) dismissal is shown further below. The terms are confidential.

Direct impact: Presumably Tencent made certain promises based on which Sony is satisfied that Light of Motiram will be reasonably distinguishable from Horizon Zero Dawn and, more generally, the Horizon series. This is a dismissal with prejudice, meaning that the same claims cannot be relitigated in the United States. The court has already closed the case:

Wider ramifications:

• The terms of this settlement are confidential. It looks like definitive peace has been made. Theoretically, there still is the possibility of litigation at a later stage over Light of Motiram in the form in which it will ultimately be released. But in that scenario, the original claims brought by Sony could not be back on the agenda. The only question would be whether or not Tencent complied with the terms of the agreement, and if not, whether that fact would enable Sony to bring new litigation. Given the level of sophistication of both parties, it would be a surprise if they had to go to war again over this game.
• The video game industry is not a particularly litigious one. There are exceptions, however, such as Nintendo’s crusade against Palworld maker Pocketpair (November 4, 2025 games fray article). Japanese litigation is not as transparent as proceedings in U.S. federal court, but there is absolutely no sign so far of Nintendo being prepared to resolve the matter constructively. Maybe that will happen at a later stage.