A complaint filed against CnYes Co. Ltd., for exploiting other’s efforts and violated the Fair Trade Law

Chinese Taipei

Case:

Key Words:

High degree of plagiarism, exploitation of other’s efforts, obviously unfair

Reference:

Fair Trade Commission Decision of May 18, 2006 (the 758th Commissioners’ Meeting), Disposition Kung Ch’u Tzu No. 095068

Industry:

Internet Information Supply Services (7321)

Relevant Laws:

Article 24 of the Fair Trade Law

Summary:

1. This case originated from a complaint filed by Sys Just Information Co., Ltd. (hereinafter referred to as Sys Just), indicating that CnYes Co., Ltd. (hereinafter referred to as CnYes) without its authorization, has downloaded the financial and economics news published on its MoneyDJ website and used the said news on CnYes website, a website that is operated CnYes. Such conduct was an exploitation of other’s efforts and thus violated the Fair Trade Law.
2. Upon the investigation, the Fair Trade Commission (FTC) found that CnYes has browsed the financial and economics news of Sys Just published on the Internet. CnYes downloaded the said news to its internal work platform to be used by its editing staffs. A comparison of the financial and economics news at issue of the complainant and the respondent showed that CnYes has published the financial and economics news at issue closely two to three hours after Sys Just. Furthermore, the financial and economics news at issue of CnYes, regardless of headlines, contents, sources, styles, predictions of sales, business gains and losses, and profits data, phrases and words used, were patently different from the commentaries for the same financial and economics written by its own reporter and the other newspaper and media, but were identical to the financial and economics news at issue of Sys Just. There were only minor differences between the financial and economics news at issue of the complainant and the respondent, including changing the order, additions, deletions, omissions and rewrite of certain paragraphs and sentences, and insert a few writings and sentences that have identical meanings. Both financial and economics news at issue indeed were highly similar as a whole. Moreover, it is found that CnYes has continued using the errors found in the financial and economics news at issue of Sys Just. It can be deemed that the financial and economics news at issue of CnYes has plagiarized greatly from the financial and economics news at issue of Sys Just.
3. Grounds for disposition:
1. CnYes, without contributing substantial efforts, has exploited the information of Sys Just accomplished from its great efforts and passed it off as information published by its own website. The purpose of such conduct was to obtain internet advertisement income by means of enhancing the website content and increasing the number of website viewers. At the same time, the said conduct also would mislead the ignorant readers or the trading counterparts in the market into believing that CnYes possessed the ability of making interview, editing and analysis for news published by its company. Such misconception would cause the said readers and trading counterparts to give up browsing and reading Sys Just’s website. As a result, the promotion of the relevant business in membership solicitation, users’ authorizations and internet advertisements for Sys Just Company will be affected, and its competitive advantage and market opportunity will decrease as well. Therefore, CnYes has exploited the great efforts of Sys Just by means of extensive plagiarism and passed it off as content of its own website to lure the potential consumers into trading with CnYes. Such conduct was sufficient to affect the trading order that emphasizes on the efficient competition of price, quality and service. From the viewpoints of Sys Just and other competitors that have abided by the essence of fair competition, the said conduct is ethically reprehensible for violating business competition. Such conduct is deemed as obviously unfair conduct that is able to affect trading order, and violated the provision of Article 24 of the Fair Trade Law.
2. Sys Just has filed a criminal lawsuit against CnYes in this case because the conduct of CnYes has violated the Copyright Law, and the prosecutor has issued an indictment against CnYes. In accordance with the Article 26 of the Administrative Penalty Act,“If one and single act constitutes simultaneously criminal offense or offenses as well as breach of duty under administrative law, it shall be punishable under the criminal law; provided, however, that an administrative penalty may be imposed additionally if the act is punishable by any other type of administrative penalty or no forfeiture is pronounced by the court of the thing which may be forfeited because of the act. In the case of an act described in the preceding paragraph, sanction may be imposed under the provisions with respect to breach of duty under administrative law if the case is ruled not to prosecute or is, by an irrevocable final decision of the court, adjudged not guilty, exempt from prosecution, dismissed or not to be put on trial.”, the administrative penalty is not imposed in the meantime. CnYes is ordered to cease the unlawful act immediately according to the anterior paragraph of the Article 41 of the Fair Trade Law.

Summarized by: Wang, Kuo-Liang;
Supervised by: Tai, Pei-Yi

Appendix:
CnYes Co. Ltd.’s Uniform Invoice Number: 70790528