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6 White Paper on the Business Environment in China
United Network Communications Limited, Hubei Branch infringement and to compensate plaintiff for its losses, and to
(hereinafter referred to as “Hubei United”) to stop provid- pay its reasonable expenses. The defendants disagreed and ap-
ing them the service of the “NetEase Cloud Music” unlim- pealed. The Shanghai IP Court decided in the second instance
ited traffic package; and order the Guangdong OPPO Mo- to reject the appeal and to sustain the original judgment.
bile Telecommunications Co., Ltd. (hereinafter referred to as
“OPPO”) to stop installation of “NetEase Cloud Music” in its (2) Significance:
OPPO brand cell phone. Wuhan Intermediate People’s Court The issue here was whether arrangement of the content of
held that Tencent possessed the legal rights to the network dis- a website constitutes a “work”, in the sense of Copyright Law.
semination of the above 623 music soundtracks upon which The trial court held that the first page of the involved website
the Guangzhou NetEase behaviour is suspected to infringe. reflects uniqueness in the selection of color and content, dis-
Thus, the Court issued the following preliminary restraining play layout, presents certain visual artistic effects, has creativi-
order: a. Guangzhou NetEase, etc., shall immediately cease to ty and duplicability, and thus, constitutes a work in the sense
provide the said 623 music soundtracks to the public through of copyright law.
the “NetEase Cloud Music” platform from the effective date of
the ruling; b. Hubei United shall immediately cease to provide 6. E∙LAND (Shanghai) Fashion Trading Co., Ltd. v.
mobile network services of the said 623 music soundtracks
within the “NetEase Cloud Music” unlimited traffic package Zhejiang Taobao Internet Co., Ltd. and Du Guofa
to its mobile cell phone customers from the effective date of
the ruling; and c. OPPO shall immediately cease to share the (1) Basic introduction to the case:
said 623 music soundtracks to its mobile cell phone clients The plaintiff, E∙LAND (Shanghai) Fashion Trading Co.,
through “NetEase Cloud Music” within ten days from the sec- Ltd. is the owner of the registered trademarks including TEE-
ond day of the effective date of the ruling. After the restraining NIE WEENIE and is highly popular. The plaintiff found
order was issued, Hubei United and OPPO immediately fol- that one defendant, Du Guofa used the trademarks includ-
lowed the order, while Guangzhou NetEase refused to accept ing TEENIE WEENIE on clothes sold on Taobao, which
the said restraining order and filed for review, which was re- infringed upon the plaintiff’s exclusive right to use its regis-
jected by the Wuhan Intermediate People’s Court. tered trademark. Since 2009, the plaintiff issued warnings
to Taobao Company regarding the existence of infringing
(2) Significance: commodities on Taobao and required it to take effective mea-
In recent years, the network industry has combined with sures to control the infringing acts, but the defendant Taobao
the music industry to become the new communication me- Company did not such take proper measures. The plaintiff,
dium for internet culture, making music soundtracks capable commencing a lawsuit requested the two defendants to com-
of being shared and downloaded unlimitedly. In this case, the pensate it for economic losses and reasonable expenses of its
Court timely issued a preliminary restraining order and en- suit and to apologize.
forced it. Importantly, it has provided a feasible protection The Shanghai Pudong District People’s Court held in the
pattern for acts of network music piracy. first instance that where an internet user employs the internet
to undertake infringing acts, the infringer has the right to no-
5. Shanghai Pafuluo Stationery Co., Ltd. v. Shanghai tify the network service provider to take necessary measures
Yixiang Stationery Co., Ltd., etc. such as deleting, blocking and disconnecting links, etc. There-
fore, the defendant Taobao Company’s failure to take mea-
(1) Basic introduction to the case: sures when it was capable of doing so supported the defendant
The plaintiff, Shanghai Pafuluo Stationery Co., Ltd., has Du Guofa’s infringing acts and constituted contributory in-
ownership rights to the copyright of its website. In 2013, the fringement, and it shall bear responsibility for compensation.
plaintiff found that the website operated by the defendants The defendant Taobao Company disagreed and appealed. The
Shanghai Yixiang Stationery Co., Ltd. and Shanghai Ou’e Shanghai First Intermediate People’s Court rejected the ap-
Stationery Co., Ltd., plagiarized and counterfeited the official peal and sustained the original judgment.
website of the plaintiff, including plagiarism of the design style, (2) Significance:
color, layout, etc., infringing upon the plaintiff’s copyright. The Internet trading platforms previously were not responsible
plaintiff requested the court to rule the defendants stop their for acts of IPR infringement, but they are now responsible
infringing acts, eliminate the effects, and compensate the plain- parties. If a trademark proprietor has issued effective notice
tiff for its losses and pay reasonable expenses of the suit. to the internet platform, while the latter only took measures
Shanghai Minhang District People’s Court held in the such as warning and freezing the internet user’s advertisement
first instance that the defendants infringed upon the plain- rather than deletion of the infringing webpage, then the de-
tiff’s website copyright, ordered the two defendants to stop liberately negligent acts of the internet platform require that it
bear liability for infringement together with the internet user.
98
United Network Communications Limited, Hubei Branch infringement and to compensate plaintiff for its losses, and to
(hereinafter referred to as “Hubei United”) to stop provid- pay its reasonable expenses. The defendants disagreed and ap-
ing them the service of the “NetEase Cloud Music” unlim- pealed. The Shanghai IP Court decided in the second instance
ited traffic package; and order the Guangdong OPPO Mo- to reject the appeal and to sustain the original judgment.
bile Telecommunications Co., Ltd. (hereinafter referred to as
“OPPO”) to stop installation of “NetEase Cloud Music” in its (2) Significance:
OPPO brand cell phone. Wuhan Intermediate People’s Court The issue here was whether arrangement of the content of
held that Tencent possessed the legal rights to the network dis- a website constitutes a “work”, in the sense of Copyright Law.
semination of the above 623 music soundtracks upon which The trial court held that the first page of the involved website
the Guangzhou NetEase behaviour is suspected to infringe. reflects uniqueness in the selection of color and content, dis-
Thus, the Court issued the following preliminary restraining play layout, presents certain visual artistic effects, has creativi-
order: a. Guangzhou NetEase, etc., shall immediately cease to ty and duplicability, and thus, constitutes a work in the sense
provide the said 623 music soundtracks to the public through of copyright law.
the “NetEase Cloud Music” platform from the effective date of
the ruling; b. Hubei United shall immediately cease to provide 6. E∙LAND (Shanghai) Fashion Trading Co., Ltd. v.
mobile network services of the said 623 music soundtracks
within the “NetEase Cloud Music” unlimited traffic package Zhejiang Taobao Internet Co., Ltd. and Du Guofa
to its mobile cell phone customers from the effective date of
the ruling; and c. OPPO shall immediately cease to share the (1) Basic introduction to the case:
said 623 music soundtracks to its mobile cell phone clients The plaintiff, E∙LAND (Shanghai) Fashion Trading Co.,
through “NetEase Cloud Music” within ten days from the sec- Ltd. is the owner of the registered trademarks including TEE-
ond day of the effective date of the ruling. After the restraining NIE WEENIE and is highly popular. The plaintiff found
order was issued, Hubei United and OPPO immediately fol- that one defendant, Du Guofa used the trademarks includ-
lowed the order, while Guangzhou NetEase refused to accept ing TEENIE WEENIE on clothes sold on Taobao, which
the said restraining order and filed for review, which was re- infringed upon the plaintiff’s exclusive right to use its regis-
jected by the Wuhan Intermediate People’s Court. tered trademark. Since 2009, the plaintiff issued warnings
to Taobao Company regarding the existence of infringing
(2) Significance: commodities on Taobao and required it to take effective mea-
In recent years, the network industry has combined with sures to control the infringing acts, but the defendant Taobao
the music industry to become the new communication me- Company did not such take proper measures. The plaintiff,
dium for internet culture, making music soundtracks capable commencing a lawsuit requested the two defendants to com-
of being shared and downloaded unlimitedly. In this case, the pensate it for economic losses and reasonable expenses of its
Court timely issued a preliminary restraining order and en- suit and to apologize.
forced it. Importantly, it has provided a feasible protection The Shanghai Pudong District People’s Court held in the
pattern for acts of network music piracy. first instance that where an internet user employs the internet
to undertake infringing acts, the infringer has the right to no-
5. Shanghai Pafuluo Stationery Co., Ltd. v. Shanghai tify the network service provider to take necessary measures
Yixiang Stationery Co., Ltd., etc. such as deleting, blocking and disconnecting links, etc. There-
fore, the defendant Taobao Company’s failure to take mea-
(1) Basic introduction to the case: sures when it was capable of doing so supported the defendant
The plaintiff, Shanghai Pafuluo Stationery Co., Ltd., has Du Guofa’s infringing acts and constituted contributory in-
ownership rights to the copyright of its website. In 2013, the fringement, and it shall bear responsibility for compensation.
plaintiff found that the website operated by the defendants The defendant Taobao Company disagreed and appealed. The
Shanghai Yixiang Stationery Co., Ltd. and Shanghai Ou’e Shanghai First Intermediate People’s Court rejected the ap-
Stationery Co., Ltd., plagiarized and counterfeited the official peal and sustained the original judgment.
website of the plaintiff, including plagiarism of the design style, (2) Significance:
color, layout, etc., infringing upon the plaintiff’s copyright. The Internet trading platforms previously were not responsible
plaintiff requested the court to rule the defendants stop their for acts of IPR infringement, but they are now responsible
infringing acts, eliminate the effects, and compensate the plain- parties. If a trademark proprietor has issued effective notice
tiff for its losses and pay reasonable expenses of the suit. to the internet platform, while the latter only took measures
Shanghai Minhang District People’s Court held in the such as warning and freezing the internet user’s advertisement
first instance that the defendants infringed upon the plain- rather than deletion of the infringing webpage, then the de-
tiff’s website copyright, ordered the two defendants to stop liberately negligent acts of the internet platform require that it
bear liability for infringement together with the internet user.
98
