What Tencent’s Trademark Strategy Tells Us?

By You Yunting

Today, we would like to introduce how Chinese enterprises protect their brands. Months ago, the news reporting Tencent (SEHK: 700)’s QQ trademark registration in all classes, including condom, is heatedly spread among Chinese netizens. From the report, we saw the local IT giant registered more than 1, 000 trademarks in the classes to protect its well-known mark “QQ” avoiding the free-riding by others, among which the class of food, matchmaking and condom is listed. Unlike the author who criticized Tencent a muddled thinking, we prefer the applications as the company’s thoughtful and overall strategy on trademark protection. Now, here’re our conclusion on Tencent’s experience and the analysis:

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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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Netease VS. Tencent: Copyright Conflict on News APP Design

Recently, the copyright battle on the APP design between Netease (NASDAQ: NTES) and Tencent (SEHK: 700), two major internet companies in China, has been widely reported by local medias, and today’s essay is the digest of the news report and the comments from us.

According to the news of Sina Tech on 12th April afternoon (note: the link is in Chinese), Netease stated its news app has been plagiarized by Rencent and demanded the latter to withdraw the infringing app. It’s also mentioned in Netease’s statement that the Tencent News App for iPhone 2.0 version plagiarizes the layout, comment page, picture page’s design, including the app function and the appearance design.

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Suggestions from Chinese Writer on the Modification on Copyright Law

The modification on China Copyright Law is under preparation, and as news reports, for the promote of internet prosperity and infringement combat, Ms. Zhang Kangkang, the vice president of Chinese Writers Association and China Literary Copyright Protection Association suggested on the law modification recently:

I. To legally determine the fault ascertainment standard of Safe Harbor Rule

Ms. Zhang suggested to drafted the standard of “known or shall be known” as the legal standard of the ISP fault ascertainment, meanwhile, the obligation of ISP shall also be listed in the modified law while no too high obligation shall be set.

Bridge IP Law Commentary’s opinion: There’s no legal standard on the ascertainment of ISP fault in Copyright Law, with the standard is referred to partly in the Article 36 of Infringement liability law, “Where no measures have been taken by IPS on knowing the infringement or violation by users against others, the ISP shall take the joint liability with the infringer.”

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