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[dmcAxle]

The lawsuit is over. It ended in a settlement.

https://www.hextcg.com/press-release-settlement/

Sep 24, 2015
This is the press release in regard to the settlement of the lawsuit with Wizards of the Coast.

PRESS RELEASE
Wizards of the Coast, Cryptozoic Entertainment and Hex Entertainment settle intellectual property infringement lawsuit

September 24, 2015 (Renton, WA) – Today Wizards of the Coast LLC, a subsidiary of Hasbro, Inc. (NASDAQ: HAS) and publisher of the strategy trading card game Magic: The Gathering®, and Cryptozoic Entertainment, LLC and Hex Entertainment, LLC, have resolved a litigation filed in May of last year claiming willful infringement of intellectual property rights arising from the digital trading card game, Hex: Shards of Fate®. The parties have entered into a settlement agreement and license with undisclosed terms.
“We recognize that Wizards owns valuable intellectual property in Magic: The Gathering, are happy to have this matter settled and excited to move forward with Hex: Shards of Fate,” said Hex Entertainment President and CEO Cory Jones. “We believe that the gaming community will benefit from knowing that Hex: Shards of Fate is no longer subject to litigation.”

“Wizards of the Coast has always welcomed new games to the trading card game genre, and we encourage TCG fans to not only play Magic, but to try many different games. However, we will not hesitate to take action to protect our intellectual property and the amazing work of hundreds of dedicated Magic team members around the world. That is why we brought this lawsuit and why we are happy to announce its resolution through a settlement and license that both protects the valuable intellectual property of Magic: The Gathering and allows Cryptozoic and Hex to move forward with Hex: Shards of Fate,” said Wizards of the Coast CEO, Greg Leeds.

The lawsuit filed in May of last year included claims for copyright, patent and trade dress infringement.

###

About Magic: The Gathering
Magic: The Gathering is the world’s first, best and most popular strategy trading card game with more than 20 million players and fans worldwide. Through a unique blend of digital game play and face-to-face play opportunities in more than 6,000 hobby game stores around the world, Magic offers a robust gaming experience for its global community of passionate fans. For more information, visit magicthegathering.com.
About Wizards of the Coast LLC

Wizards of the Coast LLC, a subsidiary of Hasbro, Inc. (NASDAQ:HAS), is the leader in entertaining the lifestyle gamer. Wizards’ players and fans are members of a global community bound together by their love of both digital gaming and in-person play. The company brings to market a range of gaming experiences under powerful brand names such as MAGIC: THE GATHERING, DUNGEONS & DRAGONS, and DUEL MASTERS. Wizards is also a publisher of fantasy series fiction with numerous New York Times best-sellers. For more information about our world renowned brands, visit the Wizards of the Coast Web site at www.wizards.com.

About Hasbro, Inc.
Hasbro (NASDAQ: HAS) is a global company committed to Creating the World’s Best Play Experiences, by leveraging its beloved brands, including LITTLEST PET SHOP, MAGIC: THE GATHERING, MONOPOLY, MY LITTLE PONY, NERF, PLAY-DOH and TRANSFORMERS, and premier partner brands. From toys and games, television programming, motion pictures, digital gaming and lifestyle licensing, Hasbro fulfills the fundamental need for play and connection with children and families around the world. The Company’s Hasbro Studios and its film label, ALLSPARK PICTURES, create entertainment brand-driven storytelling across mediums, including television, film, digital and more. Through the company’s commitment to corporate social responsibility, including philanthropy, Hasbro is helping to build a safe and sustainable world and to positively impact the lives of millions of children and families. Learn more at www.hasbro.com, and follow us on Twitter (@Hasbro & @HasbroNews) and Instagram (@Hasbro).

About Cryptozoic Entertainment, LLC
Founded in 2010, Cryptozoic Entertainment, Inc. is a premier developer and publisher of original and licensed board games, card games, comics and trading cards, including the DC Comics™ Deck-Building Game, The Walking Dead™ Board Game, The Big Bang Theory: The Party Game and Ghostbusters™:The Board Game, the 8th most funded tabletop game in Kickstarter history. Following a philosophy and core principle of “Fans First,” the dedicated gamers and fans of the Cryptozoic Entertainment team are focused on producing fun and amazing products along with epic events that bring all gaming fans together as part of the Cryptozoic community. Visit www.cryptozoic.com for more information about product releases, events and news.

About HEX: Shards of Fate
HEX: Shards of Fate had a wildly successful Kickstarter campaign, earning over $2.2 million in backing over 30 days. HEX: Shards of Fatewas also one of the first Kickstarter projects to deliver playable code to backers and launched Alpha testing for its community of backers in October 2013. HEX is currently in beta testing and expanded its community to more than just Kickstarter backers.

About Hex Entertainment, LLC
Hex Entertainment is headquartered in Lake Forest, California, and provides groundbreaking digital entertainment for serious gamers. Hex Entertainment started in 2013 with a simple premise: find “A New Way to Play.” This core value is the driving force behind a mission to re-invent digital collectables gaming. Hex Entertainment is a privately held company. For more information on Hex Entertainment, please visit www.HEXTCG.com.

Can someone update the thread title with "Update: Settlement Resolution"

I think a lot of people were hoping for a more clear outcome for this kind of situation, but as a player I'm happy with a settlement and the game being done with this over their head.

 

[Familienoberhauptvogel]

The lawsuit is over. It ended in a settlement.

https://www.hextcg.com/press-release-settlement/



Can someone update the thread title with "Update: Settlement Resolution"

I think a lot of people were hoping for a more clear outcome for this kind of situation, but as a player I'm happy with a settlement and the game being done with this over their head.

Well it means if you copy MTG mechanics 1 for 1 and a bunch of cards pay a license or expect to get sued.

It's pretty clear WoTC had a case and the settlement and license is just the natural outcome

 

[dmcAxle]

The license is probably for the duration towards the expiration of the patent. Which is..3 months. It expired in 2014. Who is going to pay for an expired patent?

And we've gone through that argument this entire thread, no point in talking about how that's just normal stuff in the entire game industry.

 

[Familienoberhauptvogel]

The license is probably for the duration towards the expiration of the patent. Which is..3 months. It expired in 2014. Who is going to pay for an expired patent?

And we've gone through that argument this entire thread, no point in talking about how that's just normal stuff in the entire game industry.

I'm new here. Won't they have to pay the license retroactively.

I don't mind Hex actually I thought it enjoyable to watch but when I'm watching someone play and within minutes see it's a carbon copy of magic in basic mechanics plus I'm able to name like half the cards just from what they do then it's pretty damning.

I played a bunch of TCG and online CCG, often they are structured similarly to MTG which is fine so long they always do things their own way mechanically and creatively. I heard Hex improved in that regard doe.

 

[charlequin]

Well it means if you copy MTG mechanics 1 for 1 and a bunch of cards pay a license or expect to get sued.

It's pretty clear WoTC had a case and the settlement and license is just the natural outcome

My read of this was almost the opposite: WotC knows that while they have more than nothing, they don't have anything really strong or decisive, so it's worth their while to settle if it gets them some small amount of money plus no explicit ruling against their case.

 

[Familienoberhauptvogel]

My read of this was almost the opposite: WotC knows that while they have more than nothing, they don't have anything really strong or decisive, so it's worth their while to settle if it gets them some small amount of money plus no explicit ruling against their case.

Well that's hard to say w/o knowing the amount but yes it could just as well be that Wizards settled to get at least something. I had assumed they had a strong case since there really aren't many successful TCGs or CCGs that feel that similar to MTG.

 

[charlequin]

Well that's hard to say w/o knowing the amount but yes it could just as well be that Wizards settled to get at least something. I had assumed they had a strong case since there really aren't many successful TCGs or CCGs that feel that similar to MTG.

They just have a patent and a lot of money. Also Hex is in kind of a unique situation in that a close Magic clone in paper is pretty useless to people while a Magic clone that takes advantage of the digital format is offering something unique.

 

[Familienoberhauptvogel]

They just have a patent and a lot of money. Also Hex is in kind of a unique situation in that a close Magic clone in paper is pretty useless to people while a Magic clone that takes advantage of the digital format is offering something unique.

Well it might suck both from a software standpoint as well as the price structure but MTGO does exists and Wizards even has their F2P title in Magic Duels that is intended as an introduction to regular magic.

Unless you mean mechanically but even then MTGO does take advantage by being digital aplenty in cube, phantom drafting, momir vig decks, etc... Mechanically they stick to paper cards but there've been a lot of ridiculous paper cards, which won't allow for shenanigans like you get in Hearthstone though.

 

[pigeon]

Well that's hard to say w/o knowing the amount but yes it could just as well be that Wizards settled to get at least something. I had assumed they had a strong case since there really aren't many successful TCGs or CCGs that feel that similar to MTG.

It's hard to judge. Back when Wizards got the patent in the first place there were dozens of tiny CCGs for often bizarre or inexplicable properties (X-Files CCG, anyone?), with a huge number of them using the tap mechanic. They basically all folded shop overnight and went away. This is probably one of the first times Wizards actually went to court to protect its patent.

However, I agree with quin that Wizards has a lot more to gain from a settlement here (because a settlement implicitly recognizes the validity of WotC's patent, which is questionable for a few reasons including the twenty years of time passed since it was issued).

 

[Brakara]

However, I agree with quin that Wizards has a lot more to gain from a settlement here (because a settlement implicitly recognizes the validity of WotC's patent, which is questionable for a few reasons including the twenty years of time passed since it was issued).

Why would they settle for recognizing a patent that expired in 2014?

 

[Remembrance]

A few things:

Yes, even with an expired patent you can be on the hook to pay royalties retroactively. Also, don't forget this wasn't just a patent case. The copyright and trade dress do not expire like the patent did.

And WotC definitely has less to lose with a patent that expired recently than a patent that is still active. Expiration is not the same as invalidity, but once it's expired you're certainly not as worried about invalidity as you were before.

Also, a case like this was probably not about getting licensing fees and then letting Cryptozoic keep doing the same thing. This case was about forcing Cryptozoic to stop using whatever card game elements WotC had problems with.

Settlements can be a lot more creative than just paying money. There's probably something in the settlement that forbids Cryptozoic from comparing their cards to Magic cards (like in the case of the Genesis Wave lookalike). If Wizards were feeling ambitious, they could even require Cryptozoic to submit all card files to Wizards for approval before releasing each new set.

 

[GatticusFinch]

They just have a patent and a lot of money. Also Hex is in kind of a unique situation in that a close Magic clone in paper is pretty useless to people while a Magic clone that takes advantage of the digital format is offering something unique.

No, they have also have a copyright and trade dress claim and a lot of money. The patent was the least of Hex's worries. If the trade dress claim made it to a jury, they could have been seriously fucked.

I also love the press release that WotC's lawyers skull fucked Hex's on over the language--"Magic: The Gathering is the world’s first, best and most popular strategy trading card game..." Awesome. Hex has to put a press release up on their page that says that.

Disclaimer: Super pissed off KS backer of Hex.

 

[Kyuur]

Thanks for the update dmcAxle. Wonder if we'll get any details on the exact settlement in the future. On the bright side, I expect Hex has made enough from its Beta for the KS money to not really be impacted.

Disclaimer: Super pissed off KS backer of Hex.

Possibly an understatement.

 

[TheSeks]

So, does this mean Hex will be renamed Magic: the Gathering: This Time Our Online Client Won't Really Suck, We Promise?

...No?

The license is probably for the duration towards the expiration of the patent. Which is..3 months. It expired in 2014. Who is going to pay for an expired patent?

I dunno about that, their settlement could be far longer than the duration and backpayments. If Wizard's said "we'll let you copy our mechanics so long as you pay us 1% every month forever" and that was the only way to get out of this, I'm sure they'd probably have taken that instead of bleeding through the courts.

 

[GatticusFinch]

Possibly an understatement.

They just need that Kickstarter money "for the final push" for the game to launch in October of 2013. *checks calendar*

 

[dmcAxle]

https://www.hextcg.com/core-system-changes-in-hex/

If this is all they have to change in game, then they got off pretty well.

-Champions have varying health of 14-26 right now. EXCEPT 20. There will be no 20 health champion.

-Card packs have 1 more common, 1 more uncommon. (17 cards total, 1 leg/rare, 4 uncommon, 12 common)

- "Murder" changes to "Kill".

- Graveyard changes to Crypt.

- Lotus/Tiger get renamed but the concept behind them is the same.


Personally I think the health thing is pretty nice and can lead to some interesting balance changes. The fact that they can't touch the number 20 is pretty hilarious.

More cards will influence sealed/draft quite a bit of course.

The Murder to Kill change is silly to me, same with Graveyard considering how wide used the term is.

Lotus/Tiger thing is mostly the same and I like the new Squirrel better.

 

[Kyuur]

Champion health thing is the only major change -- wonder how that will shake up the meta. Honestly I haven't played in a while. Waiting for it to leave beta!

 

[bounchfx]

oh wow, forgot about this game! how is everyone liking it? I backed it a long ass time ago and never got around to playing it.

edit: well, I updated my password and the website still refuses to let me sign in. guess it's time to forget about this again for a while. blah.

 

[Ryuukan]

oh wow, forgot about this game! how is everyone liking it? I backed it a long ass time ago and never got around to playing it.

edit: well, I updated my password and the website still refuses to let me sign in. guess it's time to forget about this again for a while. blah.

You should contact support.hextcg.com