*AI-generated translation, for reference only.

[Keywords]

Civil; copyright infringement; infringement of computer software copyright; substantive resolution of disputes

[Case Facts]

Fujian [REDACTED] Software Development Co., Ltd. and Beijing [REDACTED] Office Software Co., Ltd. are both well-known office software companies in China. Fujian [REDACTED] Software Development Co., Ltd. filed an action in the people's court against Beijing [REDACTED] Office Software Co., Ltd. and Zhuhai [REDACTED] Office Software Co., Ltd., alleging that their electronic dictionary software infringed its copyright in the software titled "PDF Generation Development Kit," and requesting the court to order: Beijing [REDACTED] Office Software Co., Ltd. and Zhuhai [REDACTED] Office Software Co., Ltd. to cease infringement, to publicly apologize on media outlets designated by the plaintiff, and to jointly compensate the plaintiff for losses in the amount of RMB 35,000,000 (same currency hereinafter) and bear the reasonable expenses incurred to stop the infringement. Beijing [REDACTED] Office Software Co., Ltd. and Zhuhai [REDACTED] Office Software Co., Ltd. jointly argued in defense that Beijing [REDACTED] Office Software Co., Ltd., as an affiliated company, was not the party that committed the accused infringing acts, and that the plaintiff's claims for public apology and compensation for losses were without factual basis. The Intermediate People's Court of Fuzhou, Fujian Province rendered a first-instance judgment ordering Beijing [REDACTED] Office Software Co., Ltd. and Zhuhai [REDACTED] Office Software Co., Ltd. to cease infringement, publicly apologize, and compensate Fujian [REDACTED] Software Development Co., Ltd. in the amount of RMB 10,000,000. Beijing [REDACTED] Office Software Co., Ltd. and Zhuhai [REDACTED] Office Software Co., Ltd. refused to accept the judgment and appealed to the Supreme People's Court.

[Mediation Outcome]

During the second instance proceedings, the collegial panel learned that the dispute in this case originated from a technology cooperation and development agreement concluded between the parties in 2011. Having gone from cooperative partners to litigation adversaries, the parties had filed nearly ten lawsuits against each other in courts across the country; among these, the computer software development contract dispute (2020) SPC IP Civil Final 1319 had already been included in the People's Court Case Repository as a reference case. Although both parties had long been exhausted by litigation, they had been unable to let go of their grievances. The collegial panel took the approach of explaining the applicable law and reasoning as its entry point, and, with reference to the relevant factual findings and legal analysis in the judgment of the pre-existing related case in the repository, adopted a working approach of "conducting adjudication and mediation in parallel, and using adjudication to drive mediation." After two open hearings and multiple rounds of coordination and communication, the panel ultimately facilitated the parties in reaching a mediation agreement, resolving both the "legal knot" and the "emotional knot," and achieving a comprehensive resolution of any other disputes between the parties that may arise in connection with the software at issue. Both parties sent letters of gratitude. Fujian [REDACTED] Software Development Co., Ltd. stated: "The accurate interpretation of the case facts in the judgment of the prior case, and the consideration given to the rights and interests of both parties, particularly regarding the contractual purpose and the remedies for civil liability for breach of contract, were professional and impartial. In the mediation of the subsequent case, the professional approach facilitated an amicable settlement between the parties, achieving a win-win outcome." Beijing [REDACTED] Office Software Co., Ltd. stated: "The mediation in this case demonstrates the people's court's profound understanding of and sincere concern for the development of both companies, safeguarding corporate rights, maintaining market order, and promoting social harmony."

[Mediation Guidelines]

Through relevant cases already in the repository, the parties were guided to correctly understand their respective rights and obligations, thereby achieving a "determination of rights"; on this basis, the collegial panel firmly upheld the principle of adjudicating as though itself were a litigant, balanced the interests of all parties, clearly articulated the relevant legal principles, equitable considerations, and factual basis, sought the "greatest common denominator" through mediation and communication, formulated a plan for the substantive resolution of the dispute, and achieved "resolution of the conflict," driving the enterprises to engage in healthy competition and work together toward technological innovation and the accelerated development of new productive forces, thereby achieving a "win-win, mutual-win, and multi-win" outcome.

[Related Index]

Article 96 of the Civil Procedure Law of the People's Republic of China (amended in 2023)

First Instance: Civil Judgment (2022) Min 01 Min Chu No. 183 of the Intermediate People's Court of Fuzhou, Fujian Province (28 April 2023)

Second Instance: Civil Mediation Statement (2023) SPC IP Civil Final 2041 of the Supreme People's Court (26 April 2024)