(By You Yunting) “疯狂来往” App, an in-game of China’s leading e-commerce Alibaba(NYSE: BABA)’s Messaging App Laiwang, was blamed for user’s private data leakage, according to the news. “疯狂来往” App (pronounced as “Feng Kuang Lai Wang”) was made to record players as one persons holds up a mobile device displaying words and others use gestures to provide clues to an answer, a little like guessing game. Considering that “疯狂来往”App is an interactive game among friends and acquaintances, many of the players were dressed rather casually when caught on the videos and some videos shows users in their underwear or naked while playing the game at home with family or friends. Worsen the videos also involved private information of teenagers under eighteen. Regardless of its sharing features into social networking websites such as Wechat and Qzone, some sharing videos were also automatically stored on Youku.com, a video website, which anyone can read online.
(By Albert Chen) The capital shortage is inevitable during the company operation, and many operators could be head aching with the financing. Due to the strict demands and procedures for the credit approval in the banks, the company may suffer from the refusal of loan application or delay in lending. At that time, the non-bank loan could play another main role in the company financing. Then what risks may come to foreign invested companies as they enrolled in the non-bank loan when running business in China? Please check today’s post for the answer.
By You Yunting
The competition in Chinese market is so fierce that the company would strive to make their ads be more outstanding, yet that could also bring them the risks of administrative punishment. In today’s essay, you will see our analysis on the common risk for corporate propaganda.
I. No fulfilling to the promise in propaganda
The most typical case shall be the ads from Beijing Hyundai (note: the link is in Chinese), the joint venture of Hyundai in China. As claimed in the its ads, the chief of the company promised not to reduce the sales price of its vehicle in the coming 2 years, which soon be overthrown by its price adjustment within 120 days after that with the pressure from market competition. On that, we saw the consumer filing a group lawsuit against its break-in of promise. Despite as investigated by the company that, the words of the chief is not quit the same as claimed in the media report, and Hyundai was therefore judged of no liability, the Korean brand faced a devaluing of social reputation in China. In our opinions, the losses of intangible asset of the car maker are much more than the claimed compensation. And that shall mainly lie with the over promise by the company.
By You Yunting
About one month before, the IPR Committee of Shanghai Bar Association invited the police officer from the Economic Investigating Squadron of Shanghai Police Department to deliver a speech on the criminal protection over IPR issues. And in the communication after the seminar, the police officer raised a question to the acceded lawyers, “The Shanghai Disney Land will be constructed several years later, and it’s foreseeable that there could be stores selling Mickey Mouse or other figures articles with no license thereby granted around the park. Yet, by then, the copyright protection term on Mickey could be expired, and so what measures could be taken to strike the unlicensed using or selling?”
Recently, a sale’s promotion campaign (note: the link is in Chinese) is launched by China e-commerce merchants on Weibo, a twitter like website. On 14th August, Mr. Liu Qiangdong, CEO of 360buy.com made a statement on Weibo that all the major home appliances sold on his website will maintain ZERO gross profit in the coming 3 years, and will also be 10% cheaper than those sold by Sunning and Gome, who are also the major E-retailers in China. Facing the challenge, Sunning (SZSE: 002024) and Gome (SEHK: 493) replied that all their commodities will be cheaper than 360buy.com. After that, both sides announced they will adjust the prices in time to ensure its own prices are lower than the opponent. The quarrel on Weibo triggered a promotion battle between the e-retailers, and after the 1st day of fighting, 360buy.com said the total sales of the day had been over RMB 200 million.
By You Yunting
Some friends raised me a question on Zhihu.com, a Quora like website in China, that Fang Zhouzi, a well known blogger in China, put his photographed picture of Han Han, in which Han’s background is the height table in jail , then could it be kind of reputation infringement against Han? (see http://weibo.com/1195403385/yiRc64nL7, http://weibo.com/1195403385/yiQZJhg1G)
The battle between Fang and Han is the hottest spot on China internet, and our website once posted articles to introduce the online battle and laws and regulations related. But from this January, Fang’s Weibo is flooded with more than 10 tweets against Han each day, which is truly annoying. As a man favoring Han Han, it’s truly a distress for me to face the question on Zhihu.com. But for the answer concerns the freedom of speech, though I could have refused it, I finally choose to share my opinions on it even there’s only boots rather than applauses ahead. Surely, the reply is only focusing on the “infringement” by two tweets in the links above.
With the Tort Liability Law coming into effect on 1st January of 2010, China internet companies are facing increasing pressures on the privacy violation. We would like to introduce the internet companies, especially the online game companies, the countermeasures to the risk of user information collection.
I. What legal risk from the user information collection?
Could there be any risk of collecting the hardware information, signing in IP information and software information of the users? That’s the question from a client of us. By our experience, in China, to collect the information that the owner would not like to open could possibly constitute the privacy violation. And in the internet industry, the law also prohibits the unauthorized visiting to the unlicensed computer system, the modification over other’s information or sending the information in others name arbitrarily which may constitute the privacy violation.
(By Huang Mengren) The21st Century Business Herald has reported (note: the link is in Chinese) that eMule, one of the biggest video, music and game resource sharing websites in China, has had early success in webgaming after its abandonment of downloadable content hosting, with a current monthly income of tens of millions yuan.
VeryCD, who introduced the open source software eMule into China in 2003, is the 462nd most visited website according to Alexa as of 7th February 2012. The software eMule is a P2P web sharing software based on open source code, and its main difference from the P2P sharing software Bit Torrent is that it works without the torrent file and tracker. Therefore, the operational risk to the operator of the software is much lower in theory than that of other BT sites. The report states that VeryCD.com made modifications to the eMule software for the avoidance of political risk and also shielded KAD research service. It is also stated in the report that the total cumulative downloads from VeryCD.com’s eMule are more than 30 million times.