On October 26, Xi 'an Intermediate People's Court made a judgment of first instance on the lawsuit filed by Tencent on September 22, 2021, alleging that Tiktok infringed the copyright of Yunnan Worm Valley and unfair competition. The court held that Tiktok, as a platform, should undertake corresponding management obligations for the infringing content on its platform. At present, there are still a large number of users on the platform who have infringed on the works involved. Tiktok's failure to immediately take effective measures to delete, filter and intercept the relevant videos is an aid to infringement, and it must compensate Tencent for economic losses of more than 32.4 million yuan (an average of 2 million yuan per episode) and reasonable litigation costs of 426,931 yuan.
Although the compensation faced by Tiktok has refreshed the national court's compensation record for network film and television copyright cases, it is 16 times the current highest record and hundreds of times that of some similar cases. However, the court of first instance did not find Douyin unfair competition, and the case does not apply to punitive damages.Tiktok related legal director said that the case will be appealed.
Yunnan Worm Valley publicity photo
Image source: Google
Tencent VS Tiktok Long and short video copyright dispute Timeline:
August 30, 2021
A large number of clips of the popular online drama Yunnan Worm Valley began appearing on the Douyin platform after it was broadcast exclusively on Tencent Video.
September 22, 2021
Tencent filed a lawsuit with the Xi 'an Intermediate People's Court on Tiktok's infringement of the copyright of Yunnan Worm Valley and unfair competition, demanding that Tiktok take immediate and effective measures to delete, filter and block related videos, and compensate for economic losses and reasonable expenses of 10 million yuan.
October 8, 2021
Xi 'an Intermediate People's Court officially accepted the case. Before the trial, Tencent changed the lawsuit request and increased the claim amount to 90 million yuan.
October 26, 2022
The Xi 'an Intermediate People's Court issued a first-instance judgment on a case of online users Posting clips of Yunnan Worm Valley. The court held that Tiktok, as a platform, should undertake corresponding management obligations for infringing content on its platform. At present, there are still a large number of users on the platform who have infringed on the works involved. Tiktok's failure to immediately take effective measures to delete, filter and intercept the relevant videos is an aid to infringement, and it must compensate Tencent for economic losses of more than 32.4 million yuan (an average of 2 million yuan per episode) and reasonable litigation costs of 426,931 yuan.
It is reported that the "Yunnan Worm Valley" works are based on the famous novel "Ghost Blows out the Lamp" series adaptation, its single online production cost of more than 6.6 million yuan, the total production cost of 334 million yuan. Tencent, the right holder of Yunnan Worm Valley, issued three warning letters from August 28 to 30, 2021, respectively, before the launch of the work, and from August 30, 2021 to March 16, 2022, it sent 108 infringement warning letters to the accused platform, with 6,299 infringing links.
Tencent believes that without paying copyright fees, Tiktok is attached to the popular drama content that Tencent Video enjoys legitimate rights and interests through huge investment, and its unfair competition behavior is based on the diversion behavior of infringing video content. The court held that Article 2 of the Anti-Unfair Competition Law of the People's Republic of China mentioned by Tencent, as a principle provision, can be applied only when the specific rules of the law are exhausted or the judgment made by the applicable rules is obviously improper. Tencent did not make a reasonable explanation of the application of Article 2 of the Anti-Unfair Competition Law of the People's Republic of China, so the court did not support Tencent's claim of unfair competition.
Tiktok related legal director said that the case will be appealed.
The two sides have been at war for a long time.
This is not the first time Tencent and Douyin have faced off in court over copyright issues. In May 2021, the official public account of Tencent Video issued a statement saying that after the exclusive launch of the 158 episode of the animation "Douluo Mainland" on Tencent Video, it was found that a large number of unauthorized animation complete version, cut clip and collection content appeared in Bilibili, Douyin, Kuaishou and other platforms, with more than 600 infringing links. It has seriously damaged the legitimate interests of the animation creators and copyright owners of "Douluo Continent". Subsequently, Tencent took Tiktok to court and requested the Chongqing First Intermediate People's Court to order Tiktok to compensate for economic losses and reasonable expenses totaling 61.6 million yuan. Before the opening of the trial, Tencent applied to the court to change the lawsuit request, increasing the claim amount of the Douyin infringement "Douluo Mainland" from 61.6 million yuan to 800 million yuan.
According to previous media reports, from June to December 10, 2021, Tencent sued Douyin 168 times in 18 courts in 13 provinces across the country on the grounds of copyright infringement, with a total value of more than 2.943 billion yuan. Among them, there are 4 cases with a target amount of more than 100 million yuan, and the target amount of "Douro Continent" is the highest, reaching 800 million yuan; Second is "You are My Glory" with 755 million yuan (source: yicaiglobal, China Court Documents Network, Guancha.com)
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