Firefall developer Red 5 Studios has filed for legal arbitration against Korean publisher Webzen. According to Red 5, Webzen has committed "multiple breaches" in its Asian publishing agreement, and the studio is seeking both to terminate its agreement and to "recover $5 million due to Webzen's alleged breach of its obligation and refusal to commit that money to market the game in the United States." The arbitration should not affect the United States or European release of Firefall, which will both be self-published by Red 5.

Webzen has published its own response to Red 5's claims, stating that it is "undisputable" that it has "fulfilled all of its obligations" to the studio. The publisher also mentions that Firefall has undergone numerous development delays. Webzen also references its own "disputes" with Chinese game operator The9 - majority shareholder in Red 5 - though it makes no direct allegations toward the company. The publisher states further that Red 5 Korea has "infringed Webzen's rights as the publisher in Korea," though no specifics are mentioned. Regarding the arbitration, Webzen says it will comply with the final decision, but plans to "firmly seek all of its remedies under the law."