Why a Chinese Court Judged Apple Inc. to Be the Actual Operator of the AppStore Rather than iTunes S.A.R.L?

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(By Albert Chen) Recently, in the right to network dissemination of information dispute between Li Chengpeng, a well-known Chinese writer, and Apple, a Beijing judge held Apple as the actual operator of the App Store, even though the company had maintained that iTunes S.A.R.L (“iTunes”) is the actual operator, a fact afterwards admitted by iTunes. So, today’s post will introduce the reasoning used by the first instance court in its decision.

Li filed the lawsuit with the Beijing No.2 Intermediate People’s Court (“Intermediate Court”) on January 16, 2012, claiming that his latest work “李可乐抗拆记” was made into an app downloadable in App Store for free reading, which infringed his right to network dissemination of information. Additionally, as the operator, manager, and owner of the App Store, Apple should assume liability. Based on these points, Li demanded compensation for economic damages in the amount of 305,000 yuan and reasonable expenses in the amount of 5,425 yuan.

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