Court: Hangzhou Intermediate People’s Court
Date of Issuance: August 2024
Case No.: (2024) Zhe 01 Min Zhong 1863
Issue Involved:
NetEase organized a giveaway event on Sina Weibo, offering participants the opportunity to win Jay Chou’s new digital album and concert tickets by reposting specific content. Both the event and the related Weibo posts used Jay Chou’s name. The central issue in this case is whether such conduct constitutes unfair competition.
Mengchun’s Comments:
The use of a celebrity’s name in commercial promotion does not necessarily constitute unfair competition. A determination of liability requires a holistic analysis of several factors, including whether the promotion generated any economic benefit, whether it caused consumer confusion, the extent of harm suffered by the rights holder, and considerations of business ethics.
Summary of the Court’s Judgment:
1. Jay Chou and JVR Music failed to provide evidence proving that NetEase or NetEase Leihuo obtained competitive benefits or seized economic profits that Jay Chou and JVR Music would have earned from album sales or concert events through the aforementioned actions.
2. Based on the comments from relevant consumers on platforms such as Weibo, there was no indication that the products or services offered by NetEase and NetEase Leihuo were associated with Jay Chou or JVR Music, nor did it cause confusion.
3. As a highly famous public figure, Jay Chou is expected to show some degree of tolerance for topics mentioning him online.
4. The court also noted that when Jay Chou releases a new album, it is common to see widespread trending topics, articles, and promotional reports. Giveaway events offering his albums are also common. Although NetEase and NetEase Leihuo objectively used Jay Chou’s name and the titles of his songs, their actions did not violate business ethics or the principles of good faith.
Accordingly, the appellate court upheld the ruling that NetEase and NetEase Leihuo did not commit unfair competition.
