abbreviature of adjudication
Upon receiving the notice, the internet service provider shall promptly forward it to relevant users and take necessary measures based on preliminary evidence of infringement and service type. Failure to take timely action will result in t liability for the expanded damages. In this case, the appellant (a cultural company) holds rights to develop, design, and operate TV drama merchandise. The appellant discovered unauthorized use of the dramas name on products sold by Lis store on the app operated by the app provider. The appellant filed an infringement complaint through the apps intellectual property platform, explicitly alleging unfair competition and providing relevant rights certificates and precedents. The appellant initiated seven complaints in total, three of which were rejected by the app provider. Subsequently, the appellant filed a complaint again regarding two rejected product listings, which was approved by the app provider and led to the products removal. The appellant sued, claiming Lis sales constituted counterfeit acts and unfair competition, and that the app provider failed to take timely measures to prevent infringement losses from escalating, thus bearing t liability. The first-instance court ruled that Lis sales constituted unfair competition. As a third-party e-commerce platform, the app provider objectively lacked capacity to verify each sellers product compliance. Moreover, after receiving the lawsuit, the app provider removed Lis products without causing further harm, thereby fulfilling its reasonable duty of review and avoiding liability. The appellate court held that internet service providers, when confronted with massive complaints in the digital realm, do not necessarily need to immediately take measures deletion or blocking upon receiving a complaint. Necessary actions against the complained-about products should be prudent, reasonable, and appropriate to avoid infringing on the legitimate rights of the complainant. However, effectively communicating complaint information to the complained party constitutes one such necessary measure, as failure to do so would hinder rights holders ability to protect their interests. Although the internet company specified reasons for rejecting complaints during processing, it failed to promptly relay complaint information to the complained merchant, potentially leading to expanded losses. The appellants claim that the internet company should bear t liability with Lis online store for the increased damages is valid. The first-instance courts failure to rule on this matter has been rectified by the appellate court.
Summary of judicial documents
Court of first instance/case number
Ningguo Peoples Court
(2024) Wan 1881 Min Chu No.3654
Court of second instance/case number
Xuancheng Intermediate Peoples Court
(2025) Wan 18 Min Zhong No.307
cause of action
Unfair competition disputes
Trial Judge, Second Instance
Chen Yueyin (sole adjudicator)
judge assistant
Ramang
engrossment clerk
Sweet as hell
party
Appellant (plaintiff in the first instance): Xiamen Cai Culture Media Co., LTD
Entrusted litigation agent: Li Chao Shanghai Tianyu Law Firm
The appellee (the defendant 2 in the first instance): Zhejiang Network Co., LTD
Entrusted litigation agent: Lu Houchao
Anhui Antaida (Xuancheng) Law Firm
Original defendant 1: Li
First instance judgment
Li compensated a cultural company for its economic losses;
Other claims of a cultural company were rejected.
II. Judgment of the second instance
The first instance was wrong in not determining that the appellee should bear t and several liability, and the second instance corrected it.
Considering that Li has paid the compensation to the account of the first-instance court, it is of no practical significance for the second instance to change the judgment that the network company should bear t and several liability. Therefore, the first-instance judgment is maintained.
Time of second trial
April 29,2025
Articles of Law Involved
Article 6 of the Anti-Unfair Competition Law of the Peoples Republic of China
Article 1195 of the Civil Code of the Peoples Republic of China
