Video website wins ad-blocker legal fight
Print Edition
A Shenzhen-based technology company was ordered to pay 360,000 yuan (US$58,064) in compensation to a video website for developing a software program that removes advertisements when users watch its content, a local court said yesterday.
IQiyi.com, a major video site in China, is known for obtaining the exclusive rights to a number of popular dramas including the South Korean drama series “Descendants of the Sun.”
Audiences watch videos for free after watching advertisements, or pay for VIP packages to watch ad-free content.
The free VST software developed by Shenzhen Juwangshi Science and Technology Co Ltd, which viewers download via smartphones or smart TV, removes all advertising from IQiyi.com programs.
IQiyi.com filed a lawsuit against the company at Yangpu District People’s Court, demanding 1.05 million yuan compensation.
It claimed its advertising profits, page views, download figures, and membership revenue were negatively impacted by the software.
Juwangshi said it is in the business of developing and selling software, which is a different segment of the market from that occupied by iQiyi.com, and therefore it could not be accused of violating the law against unfair competition.
However, the Yangpu court ruled that both companies target the same users via their platforms, and Juwangshi’s actions affected the website’s profitability.
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