Kaixin001.com, known as the "Chinese Facebook", sued Qianxiang Hulian, the former operator of Kaixin.com in Beijing yesterday, alleging copyright infringement and demanding 10 million yuan ($1.5 million) in compensation.
Qianxiang Hulian denied the charge, saying Kaixin.com is now under the control of Qianxiang Wangjing, another subsidiary company of Oak Pacific Interactive Co.
"Before we heard the charge, we had already transferred the operating rights to Qianxiang Wangjing in accordance with group's long-term development goal. We applied in April and got the approval from Beijing Communications Administration in May," Cai Ming, public relations manager of Oak Pacific Interactive Co, told METRO yesterday.
"We have not avoided their charge or stalled for time in our response, like Kaixin001.com stated in court, because we received the summons in June," Cai Ming added.
Qianxiang Hulian also defended itself by saying the company bought the domain name through legal channels.
In addition to asking for 10 million yuan of compensation and a public apology, Kaixin001.com also wants Qianxiang Hulian to stop using Kaixin.com, the name Kaixin, or anything similar.
Kaixin001.com claimed in court it was "dishonest competition" because netizens could not tell the difference between the two sites, which caused a decline in numbers of registered users.
"Kaixin001.com has lost many potential users and suffered a heavy loss," a lawyer for Kaixin001.com argued in court.
The lawyer expressed a desire to settle the matter in court, but Qianxiang Hulian declined.