(By You Yunting) The Chinese internet industry is a fiercely competitive one in which many large internet companies have used lawsuits to gain a competitive advantage. Lawyers are engaged by internet companies to fight against their competitors using any new laws and regulations that might offer opportunity. In the most recent unfair competition litigation Qihoo 360 v. Baidu, Qihoo 360 applied for a litigation injunction to prevent Baidu engaging in infringement. On May 23, 2014, the Beijing No.1 Intermediate People’s Court issued its first litigation injunction since the new Civil Procedure Law came into effect.
On 18th April, 2012, Guangdong Higher People’s Court heard the case of monopolized status dispute filed by Qihoo 360 (NYSE: QIHU) against Tencent (HKEX: 700), with the claim of 150 million yuan. For the background information of the case, please refer to Wiki and a letter from Zhou Hongyi, the CEO of Qihoo 360 to his employees.
The information disclosed from the indictment of Qihoo 360:
I. The request of Qihoo 360
Demanding Tencent to cease the infringement of abusing its market monopoly status, including but not limited to cease the limitation on the transaction between QQ user and Qihoo 360, selling the safeguard software in QQ; demanding the joint compensation by the defendants to the losses of RMB 150 million yuan and the apology to Qihoo 360, also the expenses of reasonable costs and lawsuit fee paid by Qihoo 360 shall also be borne by Tencent.