In another blow, FC2 lost a nearly decade-long patent infringement lawsuit to the Japanese video platform Niconico. In March 2025, Japan's Supreme Court ruled that FC2 had infringed on multiple "commentary" or "danmaku" (bullet chat) patents owned by Niconico's parent company, Dwango. The court ordered FC2 to pay 110 million yen in damages and, more critically, to cease operating its services in Japan.
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