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Tencent Wins Suit Against Linktone over Mobile IM

Xinhuanet, 1/31/10

Shenzhen-based wireless value-added service provider (SP) Tencent (0700.HK) has won a suit in the Shanghai No.2 Intermediate People's Court against Linktone (Nasdaq: LTON), claiming that unfair tactics from the competing SP's "Zhangshang iLiao" ("Mobile Chat") service has led to a clear drop in registrations and revenues for Tencent's Mobile QQ chat service. The court ordered Linktone and Zhangshang iLiao operator Weilan to halt all unfair competition, and to pay Tencent RMB 400,000 in compensation for economic damages.

Tencent claimed that Weilan and Linktone copied and used Tencent's QQ server software without permission, infringed upon Tencent's QQ penguin trademark by using its likeness on Linktone's internet and WAP pages for the iLiao service, and accessed Tencent's QQ instant messaging system without permission. Tencent sought RMB 5 mln in damages from Linktone and Weilan.

Keywords: Zhangshang iLiao Weilan penalty Internet wireless Tencent Mobile QQ mobile IM Linktone SP LTON Shanghai No.2 Intermediate People's Court 0700.HK law litigation IPR infringement WVAS

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