Recently, Tianyan Check shows that Guangzhou Huoshahuang Information Technology Co., Ltd. was ruled in a first-instance judgment by Shanghai MiHao Tianming Technology Co., Ltd., a party in the case, to compensate Shanghai MiHao Tianming Technology Co., Ltd. three ten thousand yuan for copyright infringement. The case involves the MMORPG game “Cloud City Song” under the Three Seven Entertainment, which performed well in overseas markets. On August 2nd, Tianyan Check App shows that recently, Shanghai MiHao Tianming Technology Co., Ltd., Guangzhou Huoshahuang Information Technology Co., Ltd., Guangzhou Sanqi Network Technology Co., Ltd., and Jiangsu Jiaqu Network Technology Co., Ltd. are involved in a first-instance legal document related to the dispute over the ownership and infringement of copyright.
MiHao believes that Sanqi Network Company and Jiaqu Network Company jointly operated the aforementioned game, and the涉案advertising seriously infringed on the plaintiff’s copyright. Additionally, it confused the relationship between the game “Cloud City Song – Heroic Legend” and MiHao and its products, misleading consumers. The涉案advertising brought additional downloads to the game “Cloud City Song – Heroic Legend,” and the defendants benefited from this through unfair means. The defendants’ actions clearly violated the principle of good faith and basic business ethics, constituting unfair competition.
The court found that Defendant Huoshahuang Company infringed on the plaintiff’s information dissemination rights by posting pictures with substantial similarities to the plaintiff’s work on its WeChat public account; at the same time, the defendants’ actions caused confusion among experienced players, leading them to mistakenly believe that “MiHao” and “Cloud City Song” were related, and the defendants’ business scope overlapped with the plaintiff’s, constituting unfair competition. However, the plaintiff MiHao did not provide evidence showing that Jiaqu Network Company participated in the advertisement placement, thus the court did not support the plaintiff’s claim that the defendants Sanqi Network Company and Jiaqu Network Company jointly constituted unfair competition with Defendant Huoshahuang Company.
In the end, the court ruled that Defendant Huoshahuang Company should compensate the plaintiff MiHao three ten thousand yuan.
Tianyan Check shows that Guangzhou Huoshahuang Information Technology Co., Ltd. is a wholly-owned subsidiary of Guangzhou Sanqi Network Technology Co., Ltd. Guangzhou Sanqi Network Technology Co., Ltd. is jointly held by Three Seven Entertainment (Shanghai) Technology Co., Ltd. and Three Seven Entertainment Network Technology Group Co., Ltd. In the first half of 2022, Three Seven Entertainment reported a positive performance, with overseas business development rapidly accelerating. Overseas business development has been further accelerated, with multiple games such as “Heroic Match of Soulists:斗罗大陆：魂师对决,” “Puzzles & Survival,” “Call Me a Boss,” and “Cloud City Song” performing well. The company’s overseas market revenue is expected to grow by over 40% compared to the previous year, and the company’s overseas market revenue share is continuously increasing. In April 2022, Three Seven Entertainment ranked second in the list of China’s top game companies for overseas revenue.
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