Golfzon "KakaoVX·SGM Patent Infringement Retrial Victory"

A retrial ruling has been issued stating that KakaoVX and SGM, which operate screen golf businesses, infringed on Golfzon's patent.

Golfzon's screen golf franchise business 'Golfzon Park' store
[Photo by Golfzon]

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According to the legal community on the 17th, the 24-1 Division of the Patent Court recently ruled in a retrial of a patent infringement injunction lawsuit filed by Golfzon against KakaoVX and SGM. The court found that the defendants infringed on the plaintiff's patent related to a virtual golf simulation device, ordering all related screen golf products to be destroyed. Additionally, KakaoVX was ordered to pay Golfzon 1.92 billion KRW and SGM 1.46 billion KRW in damages including delayed damages.

KakaoVX is a subsidiary of Kakao and operates the Friends Screen and Friends Academy businesses related to screen golf. SGM runs the SG Golf and SG Golf Academy businesses.

Previously, in 2016, Golfzon filed a patent infringement lawsuit claiming that the two companies infringed on its patent concerning distance adjustment technology in virtual golf simulation devices. Golfzon's patent involves technology that adjusts the distance by considering the terrain conditions where the ball is placed and the conditions of the mat used to strike the ball in the game.

The first trial accepted Golfzon's claims, ordering KakaoVX and SGM to recall and destroy all infringing products and related production facilities, and to compensate Golfzon approximately 2.5 billion KRW and 1.4 billion KRW respectively. In the second trial, it was ruled that KakaoVX's program only adjusted distance by considering both terrain and mat conditions when hitting on the fairway mat, and did not adjust distance based on terrain conditions when hitting on the trouble mat, thus differing from Golfzon's technology, leading to dismissal of the claim. Similarly, SGM applied only a predetermined basic ball speed reduction rate regardless of terrain on the trouble mat, differing from Golfzon's technology, resulting in dismissal of Golfzon's claim.

In response, Golfzon immediately appealed to the Supreme Court, which on June 30, 2021, delivered a final ruling that "KakaoVX and SGM infringed Golfzon's fundamental patent technology that adjusts distance by simultaneously considering terrain and mat conditions." The Supreme Court overturned the lower court's ruling in favor of KakaoVX and SGM and remanded the case to the Patent Court.

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