2021/03/06

Hysome Cases | An unfair competition dispute between Beijing Kuaishou Technology Co., Ltd. and a technology company in Chongqing

  • Authors: Sun Binyan, Yu Tao

  • Tab: An unfair competition dispute

Case description:

The plaintiff found that the defendant operated a cloud-controlled marketing system that allowed its users to control multiple mobile devices in batches to operate on the Kuaishou platform, which hindered the normal operation of the Kuaishou platform. In March 2021, the plaintiff entrusted our lawyers Zhang Mengyu and Li Run to file a rights protection lawsuit, requiring the defendant to compensate the plaintiff for economic losses of RMB 2 million yuan and other reasonable expenses due to its unfair competition behavior.

The focus of the dispute in this case was whether the defendant's actions constituted unfair competition and what kind of legal liability the defendant should bear.

After a trial, the People's Court of the Chongqing Pilot Free Trade Zone found that the defendant's acts were using technical means to hinder the normal operation of the Kuaishou platform, constituting the unfair competition, and ordered the defendant to pay our client the economic losses of RMB 1 million yuan. The defendant appealed to the Chongqing No. 1 Intermediate People's Court. During the second instance, the plaintiff and the defendant reached a settlement in March 2023, and finally the defendant paid the plaintiff the settlement expenses of RMB 400,000 yuan.

In this case, after receiving the client's entrustment, our lawyers fixed the evidence of the defendant's infringement and prepared litigation materials to file a lawsuit in court. The lawyers of our firm divided and characterized the new Internet infringement methods involved in this case, and divided the specific infringement contents of the defendant during the trial process and found the corresponding legal basis to help the client achieve the purpose of protecting rights to the greatest extent in this case. While stopping the defendant's infringement, our client also obtained the damages of more than RMB 400,000 yuan.