Xunlei, one of China's largest download service providers, lost
a piracy suit on Sunday and paid 150,000 yuan(20,833 U.S. dollars)
compensation to a Shanghai company.
Shenzhen-based Xunlei Network Technology Co.(Xunlei) was accused
of violating the rights of network promulgation and reaping profit,
which are legally owned by Shanghai Youdu Broadband Technology
Co.(Youdu), according to the Pudong District People's Court.
Youdu, a content provider for broadband users, paid 600,000 yuan
to get the network promulgation rights for "Confession of Pain", a
blockbuster film starring Tony Leung and Takeshi Kaneshiro, from
the copyright owner on Dec. 28, 2006, six days after it
debuted.
Youdu was allowed to provide download services one month after
the film's debut, according to the agreement. Youdu planned to
charge two yuan a download. However, a download link for the film
appeared on Xunlei's website (www.xunlei.com) in early January,
2007. On Jan. 4, the film was downloaded 520,869 times.
Youdu sued Xunlei on June 21, and asked for 150,000 yuan in
compensation.
Xunlei's attorney claimed his client provided only a third-party
link for the film and did not violate Youdu's right of network
promulgation.
The court said Xunlei objectively participated and helped the
third-party website to promulgate the pirated film and promoted the
film on its website. Xunlei, therefore, should compensate for
Youdu's economic loss.
(Xinhua News Agency February 4, 2008)