Since 2021, Epic Games has been embroiled in a legal battle with the crypto and metaverse firm Utherverse over allegations of patent infringement. Utherverse initiated the lawsuit in June 2021, claiming that Epic Games violated several of its patents related to large virtual gatherings showcased through its Fortnite concert events, specifically during the performances of Ariana Grande and Travis Scott. In January 2022, Epic Games responded with a counterclaim, arguing not only that it had not infringed upon Utherverse’s patents, but also that many of the patents in question are invalid. A jury trial is now on the horizon, set to commence on May 12, with the digital performances of Grande and Scott at the center of the dispute.
The legal exchanges between the two parties have been ongoing for years, eventually honing in on a single patent that pertains to technology for “playing back an experience in a virtual worlds system,” according to the original complaint. This could encompass the ability to replay events in a virtual setting, such as concerts or weddings. Utherverse has positioned itself as “the world’s best 3D social network,” where various virtual events and activities are held, complete with its own cryptocurrency utilized within the virtual environment.
In its defense, Epic Games contends that the performances by Grande and Scott were originally created for Fortnite before the concerts occurred, thus they do not constitute recordings “of a prior experience that occurred in a virtual environment,” as stated in a recent court document.
Over the years, Fortnite has evolved beyond merely being a battle royale game; it has transformed into a social hub where players can gather. Concerts have become a significant part of this experience. In 2020, Epic Games set a record with an in-game concert by Travis Scott, attracting 27 million attendees. Ariana Grande headlined another major concert within Fortnite in 2021. Both events were elaborate spectacles, showcasing technical prowess while allowing Fortnite players to engage in unique ways. For instance, Travis Scott’s performance featured a dramatic explosion and a larger-than-life depiction of the artist, while players danced amidst a stunningly immersive backdrop. Grande’s concert took participants to celestial and cloud-like settings where they floated around in bubbles. There were multiple replays of both events over several days.
The Fortnite concert series has proven highly successful, continually expanding with more live events. However, it is specifically the concerts featuring Travis Scott and Ariana Grande that Utherverse is targeting, demanding that Epic Games pay 15% of the revenue generated from these performances. While specific revenue figures have not been publicly disclosed, a Forbes report from November 2020 indicated that Scott made approximately $20 million, including merchandise sales, from his Fortnite event.
The jury trial scheduled for May 12 is anticipated to last between four to five days. Polygon has reached out to both Utherverse and Epic Games for their comments on the matter.
