Case No: Judgment No. 633 (2018), Final, Civil Division, Guangdong
Case Cause: Dispute over copyright infringement and unfair competition
Date: 9:00 am, April 26, 2018
Location: Main Court Room 4th floor, Higher People’s Court of Guangdong Province
Appellant (Original Plaintiff): Guangzhou NetEase Computer System Col., Ltd.
Appellant (Original Defendant): Guangzhou Huado Network Technology Co., Ltd.
Collegial Panel: Presiding Judge: Wang, Xiaoming, Judges: Ou, Lihua and Ye, Dan
Live Broadcasting Link:http://gd.sifayun.com/
Case Overview:
Guangzhou NetEase Computer System Co, Ltd. discovered that Guangzhou Huado Network Technology Co., Ltd. through its operating YY game live website and YY language APP conducted live broadcast, tape broadcast and rebroadcast of NetEase’s ” Fantasy Westward Journey ”. Huado markets and signs contracts for game broadcasting, provides a platform and relevant coded program and live screen interceptive tools for live broadcast, tape broadcast and rebroadcast broadcast its game content, profits from selling make-believe costumes, promotions etc. and therefore has infringed on NetEase’s ownership of the game and committed unfair competition. NetEase filed the case through Guangzhou Intellectual Property Court. On October 24, 2017 Guangzhou Intellectual Property Court made a first-instance judgment ruling that the defendant stop broadcasting the game screen through the internet and compensate the plaintiff with an economic loss of RMB 20 million. Both NetEase and Huado appealed against the judgment to Guangzhou Higher People’s Court.
Core Dispute:
Game scene appeared on the screen during the game the legal nature and ownership, game live broadcasting station live broadcast the game picture is it infringe on the copyright, can live broadcasting platform label it as reasonable usage to defend
Nowadays, new entertainment rises from internet broadcasting and live games are a result of the technology innovation, “Attention Economy” backdrop, the combination of which yields massive traffic and profit. How to share the enormous profits, and to set the boundary between their rights, are issues waiting for a legal solution. But live games are a new phenomenon, relevant law is still lacking, and scholars in academia circles cannot reach consensus. This is the first legal dispute over the copyright between internet game live platform and internet game producer, and it will be the guide to future legal judgement over similar disputes, impacting even the shape of the infrastructure of internet game live broadcasting industry. The impact of the final judgement of this case cannot be undervalued. April 26, 2018 is World IP Day, when there will be intense court dispute over the case in Guangdong Higher People’s Court.
Litigation Partner of Jingtian & Gongcheng—Ye Zhao is the litigation attorney representing Guangzhou Huado Network Technology Co., Ltd. Well-versed in the field of IP litigation and Competition Law, Ye Zhao has been the legal representation in famous cases such as “Weibo v. Maimai” -- unfair competition over large data, Short-Term Financing lawsuit against Rong 360 for unfair competition in connection with a wet loan, and a series of cases of unfair competition among internet businesses. Ye Zhao is a well-known lawyer in this field.
Since its establishment Jingtian & Gongcheng has been providing legal services in intellectual property and its services in IP legal transaction and dispute resolution have been proven to be best-in-class after years of hard work. The firm’s services cover all the areas of trademark, patent, copyright as well as copyright unfair competition and anti-monopoly dispute resolution. The firm has established a good reputation in professional areas of disputes over unfair competition in internet business, film and TV copyright and was highly recommended by Asian Legal Business, the rating authority in the law industry.
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