According to Technosports, the gaming world has witnessed a major legal victory as "Genshin Impact" developer MiHoYo successfully sued Chinese e-commerce giant Temu, accusing it of promoting fraudulent partnerships. The court ordered Temu to pay more than $130,000 in damages to compensate for its false advertising and damage to MiHoYo's reputation through unauthorized promotions.
This landmark case highlights the growing problem of false collaborations in digital markets and sets an important precedent for protecting intellectual property in the games industry.
The controversy began when Temu falsely promoted its cooperation with miHoYo without the prior authorization or consent of the developers of Genshin Impact. This deceptive campaign uses influencers and vloggers to promote a special Genshin Impact mission to Genshin Impact players.
The fraudulent promotion included a tempting offer: grab 10,000 rough stones for just $1.
Specifically, 10,000 rough stones have considerable value in Genshin Impact - enough to summon dozens of characters that would normally cost players hundreds of dollars to successfully summon.
When users click on the promotional link expecting to receive the promised Primogems, they are instead met with:
Automatic downloads of Temu and Pinduoduo apps, unfulfilled promised Primogem rewards, misleading information about official collaborations, and possible unnecessary app installations.
MiHoYo’s legal victory: More than just money
The court's decision involves more than just financial compensation. Temu was ordered to:
Immediately stop all fraudulent advertising activities, issue an announcement clarifying that there is no official cooperation, and pay compensation of US$130,000 to compensate for the loss of reputation and the economic losses caused to Genshin Impact.
After Temu appealed, the Zhejiang Provincial Higher People's Court decided to uphold the first-instance ruling, which demonstrates the seriousness of intellectual property infringement issues in China's judicial system.
The failure of the lawsuit was a major blow to Temu's credibility, especially in the gaming community. The company, which has previously faced scrutiny for several business practices, now faces additional challenges in building trust with potential users.
The requirement for a public apology further amplifies the reputational damage and ensures that potential customers are widely aware of the fraudulent activity.
The case could affect how e-commerce platforms handle game-related promotions. Businesses need to invest more in verification processes and legal compliance to avoid similarly costly penalties.
The victory also enables other gaming companies to take stronger action against unauthorized use of their intellectual property, potentially creating a cleaner and more trustworthy promotional environment.