China court ruling conveys right of user-generated data to internet firms – analysis

文章摘要 Internet companies’ data right based on investment in maintenance, data securityLawyer warns data protectionism may lead to a divided internet, harming public interestsA March 8 injunction issued against web-crawling firm Kuaiyi Technology by China’s Hangzhou Railway Transport Court has defined inte

  • Internet companies’ data right based on investment in maintenance, data security

  • Lawyer warns data protectionism may lead to a divided internet, harming public interests

A March 8 injunction issued against web-crawling firm Kuaiyi Technology by China’s Hangzhou Railway Transport Court has defined internet companies’ right to user-generated data, several competition lawyers told PaRR.

The injunction, sought by Tencent, ordered Kuaiyi Technology to immediately stop providing four products that were based on WeChat data and obtained via the web-crawling technique, including 'Official WeChat account article information application programming interface (API)'; ‘WeChat subscription accounts and latest articles API'; 'Tencent rolling news API'; and 'Official WeChat accounts and corporate identication information within the administrative region', as reported.

Data crawling refers to the collection of data from websites using bots, or autonomous systems on the internet. Focused web crawling refers to information gathering on a specific topic or from a specific website, and a general-purpose web crawler does not have specific targets. A search engine is a typical example of general-purpose web crawler.

The injunction in effect protected Tencent’s right to content published by users on WeChat’s public accounts, Bowen Jing, partner at Guo Biao Law Firm, told PaRR. Jing added that the court’s recognition of internet service providers’ right to usergenerated data is an “innovative judicial decision”.

With the development of big data and articial intelligence, the number of data-related internet-focused unfair competition lawsuits are going to increase, Jing said. And as the range of legal protection over data rights has expanded and become more diverse, requests for injunctions are going to become more prevalent, he added.

Data crawling bots often create a large volume of traffic and block normal user visits, Gang Fu, senior partner at Co-effort Law Firm, told PaRR. Fu added that it is a “positive shift” that the court has recognized the burden caused by data crawling on internet companies’ daily maintenance and data security.

In addition, focused web crawling used by Kuaiyi Technology in the instant case only beneted a small number of people – the data collector, buyers, and analysts – rather than the general public, Fu said.

As Kuaiyi Technology violated WeChat’s robots exclusion protocol and scrapped data for commercial purposes without generating common interests, it is hard to justify its legitimacy, Fu said. The robots exclusion protocol is a standard used by websites to inform web crawlers which areas of the website should not be accessed or scanned.

However, as many internet giants adopt an isolationist strategy in terms of data rights protection, which strictly bans web crawlers’access, it may result in a divided internet and endanger the public interest, Chambers Yang, senior partner at Dentons told PaRR.

Currently, mainstream search engines in China cannot access WeChat public accounts, which have become an important platform for “we-media”, as media published by individual citizens is known, and users have to switch among platforms to search for information, Yang added.

Legislative efforts are required to better regulate internet companies' data policy, Yang said. Before that comes, however, courts are expected to balance the interests of corporates and the public when dealing with data-related competition lawsuits, Yang said.

by Kimberly Jin in Shanghai

常见法律问题

投资并购中如何进行尽职调查?

投资并购尽职调查应涵盖以下方面:1)法律尽职调查——核查目标公司的设立及存续、股权结构、重大合同、知识产权、诉讼仲裁、劳动用工、合规经营等情况;2)财务尽职调查——审查财务报表、资产负债、收入结构、关联交易、税务合规等;3)商业尽职调查——分析行业前景、市场竞争、商业模式、客户供应商集中度等。建议委托专业律师和会计师共同进行,重点关注隐性债务、或有负债、知识产权权属瑕疵、劳动用工风险等潜在隐患。杨律师团队在投资并购领域具有丰富经验,可提供全流程法律服务。

公司并购有哪些法律风险?

公司并购主要法律风险包括:1)股权权属瑕疵风险——股权被质押、冻结或存在代持关系;2)隐性债务和或有负债风险——目标公司存在未披露的担保、保证、未决诉讼等;3)劳动用工风险——员工安置、补偿方案、社保欠缴等;4)知识产权风险——核心专利、商标、著作权的权属不清或存在侵权纠纷;5)反垄断审查风险——达到申报标准的并购需向国务院反垄断执法机构申报;6)税务风险——历史欠税、税务筹划不当等。建议在交易前进行全面尽职调查,并在协议中设置适当的陈述保证条款和赔偿机制。

并购交易中如何设计交易结构?

并购交易结构设计需考虑以下因素:1)股权收购vs资产收购的选择——股权收购继承目标公司全部权利义务(含隐性债务),资产收购可选择性收购但需办理资产过户手续;2)支付方式——现金支付(简单直接)、股权支付(换股收购,可延迟纳税)、混合支付(现金+股权+ Earn-out);3)分步交易安排——先收购部分股权,再根据经营情况决定是否收购剩余股权;4)税收筹划——合理设计交易结构以降低整体税负(如特殊性税务处理);5)风险分配机制——通过陈述保证、赔偿、托管、分阶段付款等方式分配风险。建议由律师、税务师和财务顾问共同参与设计。

以上内容仅供参考,不构成法律意见。如需专业法律服务,请联系杨春宝一级律师:chambers.yang@dentons.cn

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