After an open-court hearing in Chinese online security software developer Qihoo 360's (NYSE: QIHU) unfair competition lawsuit against rival developer Rising, the Beijing Xicheng District People's Court found yesterday that Rising's behavior did indeed constitute unfair competition. The court ordered Rising to cease its actions against Qihoo 360, issue a public apology through the media, and pay RMB 200,000 in damages.
In a statement released after the ruling, Rising said that as a provider of security and anti-virus software, it has a duty to alert users of unsafe software or software makers through the appropriate channels. The company has already filed an appeal.
Editor's Note: For more background on this topic, please see "Qihoo 360 Sues Rising for Libel" MD 6/25/10 issue.