Category Archives: Unfair competition

Different Judicial Opinions from Cases on Name Trademarks and Domain Name Conflicts in China

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By Albert Chen

In the first half of this year, our website posted an essay discussing the domain name dispute heard in the Shanghai No. 2 Intermediate People’s Court (“Shanghai Court”) concerning the renowned comedian Zhou Libo. Recently, the Beijing No. 1 Intermediate People’s Court (“Beijing Court”) decided a very similar case. Yet there were very different standards used to decide the different cases in Beijing and Shanghai. The most critical point is the determination of whether, after receiving the invitation to buy the domain name, the rights holder had bad faith during registration and use of the domain name.

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Analysis on Legal Risk of Out-of-Account Kickback by Foreign Invested Companies in China

By Luo Yanjie

As the mid-autumn festival is drawing on, the producers and sellers of moon cakes in cities throughout China (note: the link is in Chinese) are keen in the promotion of the snack. And by the investigation of some reporters, some merchants even try to get a big order for the moon cake by risking the kickback, and by one case, the reporter pretended to order 200 boxes of moon cakes in the name of a company, the kickback offered to him is 6% of each 10 thousand purchase, that means a total feedback of RMB 2, 400 will be paid to the reporter for the 200 boxes purchase. And in addition to the official kickback, another part of rebate from the salesman is also available.

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Is It Illegal for 360buy Blocking Etao’s Price Comparisonand Plugin?

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Today we are going to discuss legal problems concerning the 360buy blocking Etao.com, Alibaba’s price comparison website,’ and its plug-ins. And it shall be first pointed out, the author has no relation with either party of the event. The introduction to the event background:

In November of 2011, 360buy took technical measures to block the price search engine of Etao, who afterwards replied it would no longer index the price data of 360buy by Weibo. Yet in the price war between 360buy and Suning, Etao again published the live price comparison between 360buy and other online shopping stores. And in recent, 360buy further blocked the browser plug-in of Etao on 360buy.com, and the plug-in is designed to show the prices on different websites of the same product. Etao stated 360buy is paralyzing its software.

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Analysis on Search Promotion’s Infringement Liability against Trademark and Fair Competition

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By Luo Yanjie

In recent, 360buy.com, also called Jingdong Market, which is a famous online retailer in China, lost its lawsuit in an unfair competition dispute. In the case, another company called Jingdong Rubber registered the domain name of jingdong.cn, who recently found 360buy.com (Jingdong Market) will be on top of the search result of www.jingdong.cn, and right to the results is the link of “brand propaganda”. Then Jingdong Rubber filed a lawsuit against 360buy.com and Baidu (NASDAQ: BAIDU), accusing the defendants of unfair competition. After the hearing of the 1st instance, 360buy.com was deemed liable for unfair competition, yet meanwhile, Baidu was decided free of liability.

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Damages from Over Promotion by E-retailers

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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.

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Cartier sues Walmart’s Yihaodian of Trademark Infringement and Non-fair Competition

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—Complementation between Anti-unfair Competition Law and Trademark Law

By Luo Yanjie

Anti-unfair competition law, trademark law, Walmart, Cartier, Yihaodian, yihaodian.com, Yihaodian being charged, Cartier sues Yihaodian, malicious competition in market, unfair-competition infringement, trademark infringement, trademark lawyer, trademark infringement definition, establishment of unfair-competition, legal protection of trademark in unfair competition law, false propaganda, revision of anti-unfair competition law, completion of anti-unfair competition law,

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How to Avoid Online Game’s Risk of Gambling in China?

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Zhengtu is a online game operated by Giant China

By Albert Chen

In recent, the report of the online game gambling in some regions in China again hits the headline of the newspaper, and accordingly, the Ministry of Culture of China (MOC), the department supervising and managing the operation of online game, issued the notice (note: the link is in Chinese), demanding a new round of special examination on the online broad game in this May to June.

Actually, this is not the first time we have seen the special notice by MOC on the online gambling. Before that, MOC has respectively with the Ministry of Public Security and the Ministry of Commerce publicized Notices on the Regulation of Online Games Operation Order and Prohibit Gambling in Online Games (the “Notice I”) and Notices on Reinforced Management on Virtual Currency in Online Game (the “Notice II”). Basing on these notices, MOC afterwards promulgated the Interim Measures on the Online Game Management (the “Management Measures”) in June of 2010.

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Legal Analysis on Conflict between Domain and Name Right According to Chinese Law, II

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By Albert Chen

III. What are the user’s interests on the domain and fair reasons to the registration and using?

At present, the standard in practices to judge the user enjoys the interests on the domain is to determine whether there’s a connection between the user and the domain or the main part of the domain, and this connection involves the overlap or correspondence between the name, company name or trademark of the user and the domain.

Surely, it also comes to our attention that even there’s no overlap or correspondence as mentioned above, the interests on the domain of the user or a fair reason to the registration or using of the users could also be established when a domain has been operated for a long period and thereby accumulates the social reputation, like the 163. com of Netease and 360buy.com of Jingdong.

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Legal Analysis on Conflict Between Domain and Name Right According to Chinese Law, I

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By Albert Chen

In recent, one of the hot news in China, might be Mr. Zhou Libo’s taking back the network domain in his name (Zhou is the comedian star of Shanghai style small talk, a talk-show like performance in Shanghai dialect). Ms. Yue from Beijing registered “zhoulibo.com” (the “domain”) in 2007, and in September of 2011, Mr. Zhou filed the arbitration in the Asian Domain Name Dispute Resolution Centre (ADNDRC), claiming that the main part of the domain is as same as the pinyin of his name which is highly possible to result in the misunderstanding among the public. The ADNDRC finally adjudicated the domain to Mr. Zhou. For the dissatisfaction with the decision, Ms. Zhou brought the dispute to Shanghai No.2 Intermediate People’s Court, but the court refused all the claims of her.

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Full Text of Judicial Interpretation on Anti-Monopoly Law of China Supreme Court

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The Supreme People’s Court issued Regulation on Several Issues Concerning the Application of Law in the Trial of Civil Cases arising from Monopolistic Conducts yesterday and the new judicial interpretation of Anti-Monopoly Law will take effect on 1st June, 2012. We have translated the Chinese version into English as follows:

Regulation on Several Issues Concerning the Application of Law in the Trial of Civil Cases arising from Monopolistic Conducts

To ensure the proper judgment of civil disputes arising from the monopoly, prevent monopolistic conducts, protecting and promoting fair competition in the market, safeguarding the interests of consumers and social public interests, this regulation is enacted according to the relevant regulations such as the Anti-monopoly Law of the People’s Republic of China, the General Principle of the Civil Law of the People’s Republic of China, the Law of the People’s Republic of China on Tort Liability, the Contract Law of the People’s Republic of China and the Civil Procedural Law of the Peoples Republic of China.

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360 vs Tencent: The Summary of Anti-Monopoly Court Hearing

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.

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Opinions on E-Commerce’s Unauthorized Change to Consumers’ Comments

Case: A noted Chinese E-commerce website is recently charged with unauthorized modification to customer’s comments on the product sold.(note: the link is in Chinese) A newly bought mobile phone was found used by a consumer from Hangzhou City, who afterwards gave a poor comment on the product. Surprisingly to him, his comment was then changed to satisfy one a month later, for this the consumer only got the reply from the website that it’s a misoperation. Actually, it’s not an individual case in recent. (the image is the logo of 360buy.com, a main B2C website in China)

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Does Combination of Youku and Tudou breach China Anti-monopoly law?

Reportedly(the report is in Chinese), the two Chinese leading video websites, Youku.com Inc. (NYESE: YOUKU) (“Youku”) and Tudou Holdings Ltd. (NASDAQ: TUDOU) (“Tudou”) jointly announced today that on 11th March, 2012, they have signed a definitive agreement for the combination of Tudou and Youku in a 100% stock for stock transaction, which has been approved by each party’s board of director but still waiting for the shareholders’ approval, and is planned to be completed in the third quarter of 2012.I think, it shall be noted that some anti-monopoly issues may be arisen from the combination of the two Chinese biggest video websites, which possibly resulting adverse impacts on the rights and interests of consumers and fair competition.

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A Compromise between Michael Jordan and Qiaodan Sports?

Reportedly (Note this report is in Chinese), Michael Jordan, the star sportsman of NBA, recently made a statement that Qiaodan Sports Co., Ltd. (“Qiaodan Sports”) is suspected of infringement on his right of name, and he had initiated the legal proceeding in the People’s Court of China. And by the late news, the Shanghai Second Intermediate People’s Court has accepted this case. It is reported (Note this report is in Chinese) that the Qiaodan Sports has been approved by the Issuance Examination Committee of Shanghai Stock Exchange (SSE) to issue 11.25 million shares collecting RMB 1.06 billion, which would be issued publicly upon the future approval of China Securities Regulatory Commission (CSRC). (the image above is the trademark information retrieved from the trademark office of PRC)

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