A Case Regarding Online Complaint With Bad-faith On E-commerce Platform Confirmed As Unfair Competition By The Court In China – Anti-trust/Competition Law

A Case Regarding Online Complaint With Bad-faith On E-commerce Platform Confirmed As Unfair Competition By The Court In China – Anti-trust/Competition Law



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With the digital commerce developed quickly, the e-commerce
platform turns into a battle floor for all companies; even the
conventional manufacturers go together with the pattern. So it is necessary for
the operators to create and upkeep atmosphere of the
electrical commerce platform. Nonetheless, the behaviors of improper
competitors happen, akin to malicious criticism. Some retailers attempt
to crack down their opponents by submitting the false complaints on
e-commerce platform so as to make their opponents endure from a
poor affect, which ends up in a lower within the quantity of
advertising and a popularity of the competitors opponent. A case
relating to on-line criticism with bad-faith on e-commerce platform is
chosen as one in all annual 10 typical instances of mental property
safety of Zhejiang province on 17 April 2020. Such behaviors of
the defendant within the case violate the precept of excellent religion,
which represent unfair competitors in accordance with the article
2 of Anti-unfair Completion Legislation issued by the court docket. The explanation for
its advice is as follows: submitting complaints maliciously,
destroying the common market competitors order is clear illicit
and constitutes an unfair competitors, which make the case has a
typical that means.”

Listed here are the element introductions associated to the case:

An individual named Wanglei opened a web-based retailer on the Taobao
platform, and sells athletic merchandise akin to athletic attire and
athletic footwear. A criticism in opposition to Wanglei’s retailer was
filed on behave of “UnderArmour, INC” on December, 2016,
claiming that the merchandise of UnderArmour, INC bought by
Wanglei’s retailer have been counterfeits. The hyperlinks of the merchandise on
Wanglei’s retailer have been deleted by the platform after receiving
the criticism. The proof submitted by Wanglei was forwarded to
the platform so as to show that the merchandise on his retailer have been
bought from the approved distributor of the UnderArmour, INC.
So the platform restored his hyperlinks. However the platform obtained a
letter of termination of enterprise relationship with the corporate
“UnderArmour, INC”‘s official seal despatched by an e mail
deal with of usaunderarmour@163.com to point that the alleged
approved distributor Shoeking,Inc submitted by Wanglei had
no enterprise relationship with the “UnderArmour, INC”, and
the Shoeking,Inc was not the approved distributor of
“UnderArmour, INC”. The emails urged the platform to
takedown the infringing hyperlinks and execute the penalty onto
Wanglei’s store. In the long run, the platform thought-about that the
merchandise on Wanglei’s retailer have been counterfeits and deleted the
hyperlinks of the merchandise and made a penalty to degrade his vary on
the platform. Such penalties lasted to the date of the court docket
listening to and haven’t canceled.

The criticism in opposition to Wanglei’s retailer turned out to be pretend,
which didn’t made by the corporate UnderArmour, INC, however made by a
individual named Jianghai. And Jianghai was sued in a legal case for
he has bought the counterfeits of UnderArmour, INC and he admitted
that he made an official seal of the UnderArmour, INC with out
authorization to file the complaints on the e-commence platform.
The e-mail deal with of usaunderarmour@163.com was not belong to
UnderArmour, INC, however registered with the cellphone variety of
Jianghai’s spouse.

After the listening to, the court docket held the opinion as bellows:

Firstly, the proof submitted by Wanglei proved that his
merchandise despatched by oversea, bought for American approved
distributor, whereas there is no such thing as a proof submitted by Jianghai to
show the merchandise bought by Wanglei have been counterfeits. In accordance the
idea of trademark parallel import, it doesn’t represent
trademark infringement for importing the merchandise from the oversea
with out the authorization of the trademark proprietor or customers. So it
was authorized for Wanglei to import the merchandise even he didn’t have
the approved to promote the merchandise in China. The enterprise advantages
and benefit of his on-line store are protected by Anti-unfair
Competitors Legislation.

Secondly, because the community service content material and the community consumer
group of the net shops operated by Jianghai and Wanglei are
utterly the identical, they’ve a excessive diploma of coincidence. So
there’s a direct competition relationship between Jianghai and
Wanglei.

Third, the behaviors of Jianghai are illegitimate. It’s clear
for Jianghai that he has not approved to make use of the trademark,
neither to file the criticism in opposition to the infringement. He knew
that he bought the counterfeits however nonetheless used false materials to
precede the criticism in opposition to Wanglei’s store on Taobao. And he
took additional actions after Wenglei’s counter-complaint’s
succeeds, which satisfied the platform to take the punishment
in opposition to Wanglei’s store. Consequently, Wanglei’s store was
deteriorated. All above proved Jianghai’s malicious intent.
Moreover, goal conduct of Jianghai additionally didn’t have the
legitimacy. Jianghai filed the criticism although the platform with
the false materials, which impaired the industrial popularity of the
competitors opponent, in order that the Wanglei’s store was penalized
by the platform. Jianghai took the enterprise alternatives that
must be acquired by Wanglei’s store, and purchased the enterprise
advantages and competitors benefits. The behaviors of Jianghai
clearly violated the acknowledged enterprise ethics.

Fourthly, Wanglei suffered from losses attributable to Jianghai’s
criticism conduct. Wang lei’s store didn’t solely endure from
lack of industrial popularity, but additionally the gross sales have been affected
due to the punishment from the platform. Gross sales of March 2017
have been as much as 8434433.99RMB, and dropped on to 4820346.72RMB on
April 2017. As much as October 2018, the quantity was solely 3490658.04RMB.
Moreover, the results of the store penalty of descending was
irreversible. It may be seen that behaviors of Jianghai had led to
affected by precise lack of Wanglei.

In conclusion, the court docket thought-about that the behaviors of
Jianghai have been malicious, which violated the rules of excellent
religion and the acknowledged enterprise ethics. The conduct impaired the
respectable advantages of the contenders in the identical business,
destroyed the traditional competition orders. These behaviors constituted
unfair competitors. The court docket lastly decided that the quantity of
compensation was 2.1 million RMB (together with the cheap
price).

The above case gives a good reference and enlightenment
for bad-faith complaints: anybody who information complaints on e-commence
platform must be cautious. It’s a fast approach to take away infringing
hyperlinks by submitting the complaints. However, if anybody makes an attempt to make use of as a
technique of cracking down on respectable opponents with the improper
complaints, he will probably be punished. As soon as encounter malice to complain,
it’s needed and vital to guard respectable rights and
pursuits in line with the legislation.

Initially printed by Kangxin Companions, June 2020

The content material of this text is meant to offer a common
information to the subject material. Specialist recommendation must be sought
about your particular circumstances.

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