Recently, a music network app that was once seen as an ad-blocking tool found itself at the center of a legal dispute with Youku, Tencent Video, and Sohu Video. These video platforms accused the app of disrupting their revenue streams and infringing on their legitimate interests, seeking compensation of 1 million yuan and 60,000 yuan respectively.
The three video streaming giants emphasized that they offer a wide range of high-quality video content, with two primary business models. One involves generating revenue through short-term ads displayed on their websites, apps, and at the start of video programs. The other model allows users to enjoy ad-free viewing by paying a subscription fee, which helps fund the provision of free HD content.
LeNet App, on the other hand, boasts features like ad-blocking, video ad filtering, and web ad blocking. It even claims to be the ultimate solution for skipping all video ads instantly, allowing users to watch shows without delays. The video platforms argued that such functionality severely undermined their ability to generate revenue and maintain fair competition within the industry.
During the trial, the defendant Sauweng defended the app, stating that the plaintiffs had exploited free video content as a guise to force users into prolonged exposure to title ads, which could be considered illegal. He argued that the defendant’s simple offering of a multi-functional music app did not constitute infringement or unfair competition. The plaintiff, however, countered that their platforms invest heavily in acquiring and producing original movies and TV shows, which they provide freely to users. This business model is standard across the industry, and they believed their legitimate rights were being unjustly violated.
As the case unfolded, the court heard arguments from both sides, highlighting the complexities of balancing user convenience with the financial sustainability of content providers. The plaintiff insisted that their business model relies on ad revenue and subscriptions, and any interference with this model undermines their ability to continue offering high-quality content. Meanwhile, the defense maintained that the app’s functionalities merely enhanced user experience without causing direct harm to the plaintiffs’ operations.
This case reflects broader debates over digital advertising practices and the ethical implications of ad-blocking technologies. While some argue that these tools empower users, others stress the importance of preserving traditional revenue streams that sustain creative industries. As the trial progressed, it became clear that the outcome would have significant ramifications for both tech companies and content creators alike.
Cixi Xinke Electronic Technology Co., Ltd. , https://www.cxxinke.com