Konami Drops $29 Million Lawsuit Against Umamusume: Pretty Derby After Settlement with Cygames
Introduction: The Legal Storm That Shook Japan’s Gaming Scene
In a surprising move, Konami has officially dropped its ¥4 billion ($29 million) patent infringement lawsuit against Cygames, the creator of Umamusume: Pretty Derby. The case, which began in 2023, had major implications for Japan’s booming mobile gaming industry. But now, after years of legal uncertainty, the two gaming giants have reached a confidential settlement—bringing relief to millions of fans.
Konami and Cygames have reached a settlement in their patent lawsuit over Umamusume: Pretty Derby
— Dexerto (@Dexerto) November 7, 2025
The company had originally sought over $26 million in damages and the shutdown of the game pic.twitter.com/TWkzdjU8Gn
Background: How the Dispute Started
The conflict originated in March 2023 when Konami sued CyberAgent, Cygames’ parent company, for allegedly infringing on patented gameplay mechanics. The lawsuit claimed that Umamusume: Pretty Derby—a top-grossing mobile game mixing horse racing, character development, and anime-style storytelling—used systems similar to Konami’s own patented technology.
While Konami didn’t disclose specifics, reports from Automaton suggested the issue revolved around the training and support systems that define Uma Musume’s gameplay. The company demanded around $29 million in damages and sought to suspend the game’s distribution—a potential death blow for the franchise.
Cygames, however, denied all allegations and vowed to defend its creative work, sparking a major conversation in Japan’s tech and gaming circles.
Settlement Reached: Case Closed, Game Saved
Fast-forward to November 2025: Konami and Cygames have officially reached an out-of-court settlement. Konami dropped all claims, allowing Umamusume to continue operations without any interruption. CyberAgent confirmed the resolution, noting that the settlement had a “minor” impact on business performance.
The exact financial details remain undisclosed, fueling speculation. Whether Konami received a payment or simply opted to end an expensive court battle remains unclear—but the clear winner is the Umamusume community, which can now breathe easy.
Public Reaction: Fans Celebrate While Criticizing Patent Wars
The gaming community erupted in relief after Dexerto’s post on X (formerly Twitter) confirmed the news—garnering over 10,000 likes within hours.
- “Konami saw the profits and said ‘let’s be friends again.’ 💀”
- “Patent trolling needs to stop in gaming.”
- “Stick to pachinko, Konami!”
This reaction reveals deep frustration with companies weaponizing patents to block competitors. Many argue such lawsuits threaten creativity in a market already dominated by gacha games and monetization models.
Industry Implications: A Warning for Game Developers
The case highlights an ongoing tension in the gaming industry—how far can companies go to protect their innovations before stifling others? Konami’s retreat may indicate that even major publishers are rethinking the cost of patent battles versus public backlash.
For Cygames, the outcome reinforces its position as one of Japan’s leading creative forces, capable of standing up to industry veterans. Umamusume: Pretty Derby continues to generate significant revenue through in-app purchases and live events, proving that community support can sustain even the most niche gaming concepts.
What’s Next for Konami and Cygames?
For Cygames:
The company will likely maintain its focus on Umamusume expansions, anime tie-ins, and potential overseas growth. Fans are still hoping for an official English release.
For Konami:
The publisher faces a crucial turning point. Once known for legendary titles like Metal Gear Solid and Silent Hill, Konami now relies heavily on pachinko machines and mobile ventures. This settlement may serve as a quiet acknowledgment that reputation and goodwill are more valuable than short-term legal victories.
FAQs
Q1. Why did Konami sue Cygames?
Konami accused Umamusume: Pretty Derby of infringing on patented game mechanics related to character training and support systems.
Q2. Did Konami win the lawsuit?
No. The case was settled out of court, and Konami withdrew the lawsuit without halting the game.
Q3. Will Umamusume: Pretty Derby continue operating?
Yes. The game remains fully active and unaffected by the legal case.
Q4. How much was the settlement?
The settlement terms were confidential, but CyberAgent described the impact as “minor.”
Q5. What does this mean for gamers?
It signals that major developers are willing to compromise to avoid disrupting successful games, ensuring stability for fans and creators alike.
Conclusion: A Victory for Creativity Over Corporate Control
The end of Konami’s lawsuit marks more than a legal truce—it’s a defining moment for creative freedom in gaming. While patent protection remains essential, its misuse can endanger the very innovation it’s meant to protect. The Umamusume case underscores that games thrive not through legal dominance but through passionate communities, unique ideas, and cultural resonance.
In a rapidly evolving digital era, the true winners are those who understand that collaboration—not litigation—drives progress. As the horse girls continue to race forward, Konami and Cygames leave behind a powerful lesson: in the game of innovation, creativity always takes the lead.
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