Cygames parent company sees $4.7 million loss resulting from Konami patent infringement lawsuit  

CyberAgent says the lawsuit lodged by Konami against Cygames' Umamusume: Pretty Derby has resulted in an extraordinary loss of 727 million.

CyberAgent, the parent company of Umamusume: Pretty Derby developer Cygames, says it will record an extraordinary loss of 727 million yen (around $4.7 million USD) in the ongoing fiscal year resulting from the recently settled lawsuit with Konami. This was disclosed in an annual financial briefing published by the company on November 14. 

The lawsuit, filed by Konami over the alleged infringement of multiple game-related patents in Umamusume: Pretty Derby, was lodged in May 2023 and came to a conclusion on November 7, 2025, when the two companies announced they’d reached a settlement. Konami originally demanded 4 billion yen (over $26 million USD) in damages and an injunction against the game’s production. Cygames, on the other hand, initially did not acknowledge the infringement and launched invalidation trials against the patents in question. However, the developer eventually decided to settle the dispute out of court, prioritizing the longevity of their game. 

Umamusume; Pretty Derby

Although detailed terms of the settlement have not been disclosed due to confidentiality obligations, expenses related to the case amount to around $4.7 million USD on Cygames’ part, according to CyberAgent. They don’t provide a breakdown, so this likely accounts for various legal expenses incurred throughout the proceedings, not only damages paid to Konami. 

On a more positive note, CyberAgent also reports that its overseas revenue has increased almost six-fold compared to the previous year, thanks to Umamusume: Pretty Derby’s extremely successful global release.

Related articles: Cygames steps in to refund Umamusume: Pretty Derby fans after expensive blunder by third-party vendor 

Umamusume: Pretty Derby highly popular among “core” gamers with over 100 games on Steam, research says 

Amber V
Amber V

Editor-in-Chief since October 2023.

She grew up playing Duke Nukem and Wolfenstein with her dad, and is now enamored with obscure Japanese video games and internet culture. Currently devoted to growing Automaton West to the size of its Japanese sister-site, while making sure to keep news concise and developer stories deep and stimulating.

Articles: 1159

Leave a Reply

Your email address will not be published. Required fields are marked *