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December 29, 2012

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Ctrip travel agency stole clients on web, suit says

CTRIP, the country's leading online travel agency, is accused in a lawsuit of using the link promotion service of China's largest search engine to steal customers and cause severe losses to a Guangdong-based ticket agent.

Dongguan Guo'an Ticket Co. Ltd is seeking 5 million yuan (US$801,835) in compensation from Ctrip for alleged trademark infringement and unfair competition, the Shanghai No. 1Intermediate People's Court heard yesterday.

Guo'an said it found the first search result of "Guo'an ticket" on a search on baidu.com directed Internet users to ctrip.com when clicked in July. Guo'an blamed the link for its declining online sales.

"It was an infringement action for Ctrip to use our company name in its promoted links. The action was also an unfair means of competition that cost Guo'an nearly 6 million yuan in losses," said Liu Yaya, a lawyer representing Guo'an.

Liu said Guo'an is the trademark holder of its company name until at least 2017. Liu said Ctrip infringed both the trademark rights and the company's naming rights.

According to Liu, Ctrip created the infringing promotion link on September 21, 2011 to lure online customers to book air tickets and travel packages on Ctrip's website. The link was not deleted until November 29 of this year, the court heard.

Ctrip denied the accusation.

Guo'an said the compensation was based on a daily average margin of its sales income before and after the link was deleted. Guo'an said it is willing to mediate but Ctrip refused. The court didn't make a ruling yesterday.




 

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