Chinese language stay streaming firm DouYu has received a lawsuit towards Leyou Community Know-how, the mother or father firm of Chinese language esports group Royal By no means Give-Up (RNG) and has been awarded ￥30M RMB ($4.5M USD) by a Chinese language court docket, in response to a report in 21 Finance. The lawsuit filed within the Wuhan Intermediate Individuals’s Court docket in September of 2019 revolved round a breach of contract dispute between the 2 firms associated to streaming and content material creation.
Leyou and DouYu signed a one-year unique streaming deal for esports group RNG in September of 2018 that included ￥20M ($3M) in base pay, a ￥11M ($1.64M) bonus, and the business rights to make use of RNG gamers’ photos and names. Nonetheless, RNG allowed League of Legends participant Liu “Zz1tai” Zhihao to stream on competitor Huya starting in February of 2019, and additionally allowed gamers to attend Huya’s esports discuss present “Esports Youth Converse.” As well as, Leyou transferred the working and business rights of RNG to a different firm known as Tiantong Cultural Communications.
The court docket confirmed that these actions associated to Huya violated the phrases of the contract and dominated that Leyou should pay ￥10M ($1.5M) in compensation to DouYu.
The court docket defined that the remaining ￥20M ($3M) penalty was as a result of two RNG gamers retired with out giving DouYu written discover. In 2019, RNG introduced that its League of Legends gamers Yan “Letme” Junze and Liu “Mlxg” Shiyu had retired, and had been changed by gamers Xiao “LovEZrr” Zhi and Xie “Langx” Zhenying. DouYu satisfied the court docket that Zhi and Zhenying weren’t capable of present the identical degree of efficiency and affect because the people that they had changed.
The lawsuit is made much more fascinating by the truth that in August Tencent Holdings revealed its intentions to merge each Huya and DouYu into one firm.
The Esports Observer has reached out to RNG for clarification and can replace this text if we obtain a response.