A SOUTH Korea-based game developer plans to sue Shanghai-based 9you.com, which is scheduled to float shares for the first time to raise US$160 million on July 12, for a royalty fee dispute, Shanghai Daily learned late yesterday.

T3 Entertainment, the game developer of Audition, will probably sue 9you, the Chinese operator of the popular online dance game Audition, according to an internal statement Shanghai Daily got late last night.

"We have tried over the past several weeks to reach agreement regarding the significant amount of fees owed to us from 9you but 9you has not taken the proper steps to resolve this matter," said Kim Kiyoung, chief executive of T3 Entertainment. "It has left us no other choice but to seek legal remedy."

The statement didn't provide the detailed financial figures and both sides were not available to make comments on the issue last night.

Audition, published in 14 countries or regions, brought a considerable income to 9you and the company's total registered member number was 120 million by the end of the third quarter last year compared with 53 million a year ago, according to 9you's Website.

The 9you will go public in Japan on July 12 to raise about US$160 million, the No. 1 overseas initial public offering by a Chinese game firm, compared with US$154 million of Shanda in 2005 and US$103 million of The9 in 2004.

Shanghai-listed China Kinwa High Technology Co (stock code: 600110) holds about 16 percent stake of 9you, domestic media reported.