MiHoYo Terminates Legal Partnership Amid Conflict of Interest: An Insight into the Controversy
Summary:
- MiHoYo has severed ties with Shanghai Huiye Law Firm following a conflict of interest involving its legal advisor, Lawyer Zhou.
- The controversy arose from allegations that Zhou gathered evidence for Envision Energy, despite representing MiHoYo.
- The incident highlights vulnerabilities in law firm conflict of interest protocols and raises questions about legal ethics.
On February 10, 2026, MiHoYo, the renowned gaming development company, released a significant statement regarding its legal advisory relationship with Shanghai Huiye Law Firm. The firm’s long-term legal advisor, Lawyer Zhou, was implicated in a conflict of interest relating to an ongoing litigation case with Envision Energy. Despite being aware of this conflict, Zhou allegedly collected evidence for Envision Energy, prompting MiHoYo to terminate all relations with the law firm and place it on their permanent partner blacklist.
The Origins of the Dispute
The conflict began in June 2025, when MiHoYo introduced a fictional entity named “Vision Corporation” in the game "Zero." This fictional villain bore a name strikingly similar to that of the real company, Envision Energy, which subsequently led to legal action. Envision Energy claimed that the resemblance damaged its reputation, resulting in a lawsuit filed against MiHoYo.
As the legal proceedings unfolded, MiHoYo countersued Envision Energy for commercial defamation. After a series of hearings in 2026, the case concluded with Envision Energy withdrawing its lawsuit, permitted by the Jiangyin Municipal People’s Court.
The Legal Breach
MiHoYo’s official announcement outlined the rationale for terminating its partnership with Huiye Law Firm. Zhou, as a legal advisor, had simultaneously represented Envision Energy in the dispute against MiHoYo, a clear breach of legal ethics as outlined in the Lawyers Law. This situation escalated when Zhou allegedly assigned trainee lawyers to assist in gathering evidence for Envision, violating the established rules prohibiting private engagements during active professional activities.
In the aftermath, the Shanghai Xuhui District Justice Bureau investigated Zhou’s actions and issued a warning, ruling that he had indeed engaged in prohibited behavior by accepting private commissions.
Analyzing the Conflict of Interest
Legal experts, including gaming law attorney Ren Yu, provided insights into the dynamics of this situation. In many domestic law firms, lawyers operate with significant autonomy, often functioning as self-employed entities under the firm’s umbrella while managing their own client relationships. As a result, conflicts may arise when lawyers handle cases for competing clients without sufficient interdepartmental communication.
To mitigate such risks, law firms generally implement conflict of interest checking systems, which should ideally alert lawyers of potential conflicts before they accept new clients. However, in this scenario, the system seems to have failed, leading to Zhou’s involvement in a conflicting matter.
According to Huiye Law Firm, evidence collected by Zhou was deemed to be sourced from public channels, but the timing and nature of this evidence collection raised red flags for MiHoYo, emphasizing their perspective that such actions jeopardized their interests.
Legal and Ethical Implications
The incident raises substantial concerns about the protocols and practices within large law firms. MiHoYo’s decision to distance itself from Huiye Law Firm underscores a critical point: clients demand transparency and unwavering ethics from their legal advisors. With MiHoYo being significantly invested in protecting its intellectual property, the breach of trust was evidently enough to terminate a previously fruitful partnership.
From the perspective of the law firm, the repercussions were undoubtedly severe. In their official statement, Huiye Law Firm acknowledged shortcomings in its monitoring processes regarding conflicts of interest, pledging to enhance compliance standards moving forward.
The Unintended Consequences
Interestingly, the ripple effects of this turmoil extend beyond just the two involved firms. The co-consultant lawyers at Huiye Law Firm who were dedicated to representing MiHoYo face potential fallout despite not directly participating in the dispute. The abrupt termination of a longstanding relationship casts uncertainty over their future engagement with MiHoYo, especially amidst the imminent Spring Festival.
Conclusion
In conclusion, the MiHoYo and Huiye Law Firm controversy presents a rich case study in legal ethics and the importance of robust conflict of interest management. As the gaming industry increasingly relies on stringent intellectual property protection, the implications of such conflicts will undoubtedly become more pronounced. Legal firms must take proactive measures to uphold the highest standards of ethical conduct, ensuring that client trust is preserved and conflicts are effectively managed. The case serves as a cautionary tale for all legal professionals, highlighting the critical need for transparent practices and adherence to established ethical guidelines.
