Iqiyi sued Weitong for unfair competition and was awarded 120,000 yuan


Release Time:

2022-08-18

The plaintiff, iQiyi Technology Co., Ltd. is the operator of iqiyi.com and iQiyi App, and its main source of revenue is advertising and paid membership. The defendant, Hefei Weitong Information Technology Co., Ltd. sold a customized film and television App developed and operated by it in a Taobao store, which allowed users to enter the iQiyi website and enjoy all the rights and interests of iQiyi members without having to watch advertisements or log in to iQiyi members. The plaintiff believed that the defendant's sales behavior constituted unfair competition, so it filed a lawsuit with the Beijing Haidian District People's Court, requesting the court to order the defendant to compensate 1 million yuan.

The plaintiff, iQiyi Technology Co., Ltd. is the operator of iqiyi.com and iQiyi App, and its main source of revenue is advertising and paid membership. The defendant, Hefei Weitong Information Technology Co., Ltd. sold a customized film and television App developed and operated by it in a Taobao store, which allowed users to enter the iQiyi website and enjoy all the rights and interests of iQiyi members without having to watch advertisements or log in to iQiyi members. The plaintiff believed that the defendant's sales behavior constituted unfair competition, so it filed a lawsuit with the Beijing Haidian District People's Court, requesting the court to order the defendant to compensate 1 million yuan.

After the trial, the court held that users watching iQiyi videos through the customized film and television App involved in the case did not need to accept the service preconditions set by iQiyi and make corresponding choices, which hindered the normal operation of the network services provided by the plaintiff iqiyi and damaged the interests of the plaintiff. The defendant can increase the number of its users without paying too much cost, and benefit from external sales and customized movie and television apps, which increases its competitive advantage. Therefore, the defendant Weitong company shall be liable for compensation. As the legal representative and sole shareholder of the company, the defendant Li Mou has no evidence to prove that he is independent of the property of the company and shall bear joint and several liability.

The first instance of the Beijing Haidian District People's Court finally made a judgment, ordering Weitong company and Li Mou to jointly compensate the plaintiff iQiyi Company 120,000 yuan. After the verdict, the two defendants appealed, and the court of second instance rejected their appeal and upheld the original sentence.

Source: China Intellectual Property News/China Intellectual Property Information Network

Source: China Intellectual Property News /China Intellectual Property Information Network

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