Analysis on Application of Red Flag Rule in China

By Luo Yanjie

Recently, Shanghai No.2 Intermediate People’s Court issued “Investigation Report about Infringement of Right of Information Network Dissemination in the Area” which introduces the application of “red flag” principle in China. Today we would like to share the topic with readers as follows:

I. The basic concept of “red flag” principle

Red flag” principle is an exception of “safe harbor” principle. It means if the fact of infringement obviously like a “red flag” flying, network service providers cannot pretend not to see, or to shirk responsibility as not knowing. In this premise, even if the right people have issued a notice, the court should also identify the Internet service provider is aware of third party’s infringement and shall bear tort liability.

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No Infringement of SONY TV’s Unauthorized Cartoon Playing

By Luo Yanjie

In our past post “How Sony Can Avoid Copyright Risk”, we gave our legal opinion in the copyright infringement charged against SONY. And in that case, SONY integrated the function of networking in a type of its TV products, by which the consumer could watch the cartoon produced by an animation company after registering its TV and the application for an account on an appointed websites under the instruction of SONY. The animation company sued SONY and the website in Beijing after detaining the infringement.

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How Sony Can Avoid Copyright Risk?

Highlights: The article analyzes the case that SONY sued for the infringing content of internet Video-On-Demand service integrated in TV set and the provisions of port principles in China Copyright Law.

It is reported that SONY (TYO: 6758, NYSE: SNE), along with a VOD website, was sued by a Chinese cartoon company (the “copyright owner”), and Beijing Dongcheng District People’s Court has accepted the suit.

As news­ reports, the copyright owner claimed that SONY integrated the internet unicast service software in certain type of its TV set. Furthermore, with SONY’s TV set instruction, the consumer could watch the content of infringing program after registering the serial number of TV online and an account with a website in sequence.

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