Page 152 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
[Significance] This is a model case involving market in this case shall be defined as the service
the judgement of ownership of data rights and market with license to use films or audiovisual
interests and legitimacy of data capture. The recordings within Mainland China in KTV business.
judgement in this case balanced the interests of all Since CAVCA, currently as the only collective
relevant parties, reasonably defined the ownership management organization in the relevant market,
and boundaries of various data rights and has clear advantage in quantity and scale of
interests, and provided a rational analysis basis for films or audiovisual recordings it was authorized
judicial protection of data rights and interests. It to manage, it has strong representation in KTV
exemplifies preventing data monopoly, improving business. As a result, it can be deemed dominant
the legal system of digital economy, and facilitating in the relevant market. However, though the
the sound development of digital economy. existing evidence found that CAVCA and Tianhe
Company were in a principal-agent relationship
9. Dispute over monopoly of copyright and that Tianhe Company was not a third party
by collective management organization business designated by CAVCA under the Anti-
Monopoly Law, Article 17.1.4, it was not enough
Huizhou Huanchang Yibai Entertainment Co., to prove that CAVCA had a monopoly such as
Ltd. v. China Audio-Video Copyright Association limiting transactions or adding unreasonable
(CAVCA) regarding monopoly dispute [Beijing trading condition set forth in the Anti-Monopoly
Intellectual Property Court (2018) BJ 73 Civil First Law, Article 17.1.4 and Article 17.1.5. As such, the
Hearing No. 780 Civil Judgement] court of first hearing ruled to dismiss the claims
of Yibai Company.
[Case Summary] Huizhou Huanchang Yibai
Entertainment Co., Ltd. (hereinafter, “Yibai [Significance] This case relates to many
Company”) sent the China Audio-Video Copyright heated issues such as the operating mechanism
Association (hereinafter, the “CAVCA”) three of copyright collective management organizations
Requests for Signing a Contract for Licensing and payment methods. The judgement specified
the Use of Copyright, in order to directly enter that a copyright collective management
into a use contract with CAVCA with respect to organization was still subject to the Anti-Monopoly
the relevant music under the management of Law, clarified the nature of the acts of a copyright
CAVCA. CAVCA had not agreed in its reply letter, collective management organization, and
while requiring Yibai Company to communicate promptly responded to the practical needs of
with a non-party, Guangzhou Tianhe Cultural anti-monopoly law enforcement. The judgement
Development Co., Ltd. (hereinafter, “Tianhe in this case actively promoted orderly operation
Company”) about said matter. Yibai Company of a collective management organization and
filed a lawsuit in the Beijing Intellectual Property effectively protected the legal rights and interests
Court, claiming that CAVCA had licensed and of right holders and various businesses. It
signed contracts for the audiovisual works and is of significance for facilitating the orderly
music system under its collective management development of cultural industry and regulating
through cooperation with Tianhe Company. the market order of fair competition.
However, the parties failed to reach an agreement
due to the unreasonable conditions proposed 10. “LEGO” Copyright Infringement
by Tianhe Company for signing a contract, and
CAVCA refused three times to directly enter into People v. Li Haipeng, et al. regarding copyright
a contract with Yibai Company. The foregoing infringement [Shanghai High People’s Court (2020) SH
acts of bundling transactions that introduced Criminal Final Hearing No. 105 Criminal Judgement]
CAVCA, a non-profit copyright collective
management organization, to the commercial [Case Introduction] As works of act created
collective management of Tianhe Company, was by LEGO System A/S, 47 series consisting of 663
a monopoly of abusing its market dominance. products, including the building toy, “Great Wall
The court of first hearing held that the relevant of China”. Based on the works, LEGO created
152
[Significance] This is a model case involving market in this case shall be defined as the service
the judgement of ownership of data rights and market with license to use films or audiovisual
interests and legitimacy of data capture. The recordings within Mainland China in KTV business.
judgement in this case balanced the interests of all Since CAVCA, currently as the only collective
relevant parties, reasonably defined the ownership management organization in the relevant market,
and boundaries of various data rights and has clear advantage in quantity and scale of
interests, and provided a rational analysis basis for films or audiovisual recordings it was authorized
judicial protection of data rights and interests. It to manage, it has strong representation in KTV
exemplifies preventing data monopoly, improving business. As a result, it can be deemed dominant
the legal system of digital economy, and facilitating in the relevant market. However, though the
the sound development of digital economy. existing evidence found that CAVCA and Tianhe
Company were in a principal-agent relationship
9. Dispute over monopoly of copyright and that Tianhe Company was not a third party
by collective management organization business designated by CAVCA under the Anti-
Monopoly Law, Article 17.1.4, it was not enough
Huizhou Huanchang Yibai Entertainment Co., to prove that CAVCA had a monopoly such as
Ltd. v. China Audio-Video Copyright Association limiting transactions or adding unreasonable
(CAVCA) regarding monopoly dispute [Beijing trading condition set forth in the Anti-Monopoly
Intellectual Property Court (2018) BJ 73 Civil First Law, Article 17.1.4 and Article 17.1.5. As such, the
Hearing No. 780 Civil Judgement] court of first hearing ruled to dismiss the claims
of Yibai Company.
[Case Summary] Huizhou Huanchang Yibai
Entertainment Co., Ltd. (hereinafter, “Yibai [Significance] This case relates to many
Company”) sent the China Audio-Video Copyright heated issues such as the operating mechanism
Association (hereinafter, the “CAVCA”) three of copyright collective management organizations
Requests for Signing a Contract for Licensing and payment methods. The judgement specified
the Use of Copyright, in order to directly enter that a copyright collective management
into a use contract with CAVCA with respect to organization was still subject to the Anti-Monopoly
the relevant music under the management of Law, clarified the nature of the acts of a copyright
CAVCA. CAVCA had not agreed in its reply letter, collective management organization, and
while requiring Yibai Company to communicate promptly responded to the practical needs of
with a non-party, Guangzhou Tianhe Cultural anti-monopoly law enforcement. The judgement
Development Co., Ltd. (hereinafter, “Tianhe in this case actively promoted orderly operation
Company”) about said matter. Yibai Company of a collective management organization and
filed a lawsuit in the Beijing Intellectual Property effectively protected the legal rights and interests
Court, claiming that CAVCA had licensed and of right holders and various businesses. It
signed contracts for the audiovisual works and is of significance for facilitating the orderly
music system under its collective management development of cultural industry and regulating
through cooperation with Tianhe Company. the market order of fair competition.
However, the parties failed to reach an agreement
due to the unreasonable conditions proposed 10. “LEGO” Copyright Infringement
by Tianhe Company for signing a contract, and
CAVCA refused three times to directly enter into People v. Li Haipeng, et al. regarding copyright
a contract with Yibai Company. The foregoing infringement [Shanghai High People’s Court (2020) SH
acts of bundling transactions that introduced Criminal Final Hearing No. 105 Criminal Judgement]
CAVCA, a non-profit copyright collective
management organization, to the commercial [Case Introduction] As works of act created
collective management of Tianhe Company, was by LEGO System A/S, 47 series consisting of 663
a monopoly of abusing its market dominance. products, including the building toy, “Great Wall
The court of first hearing held that the relevant of China”. Based on the works, LEGO created
152
