Qihoo 360 Wins Unfair Competition Case Against Ruixing; Ruixing Appeals

Sina Technology News, afternoon message on May 10th, according to Qihoo 360, the Xicheng District Court of Beijing publicly tried the case of Qihoo suing Rising for unfair competition today. The court announced in court that Rising was guilty of unfair competition and needed to compensate Qihoo with 200,000 yuan. Rising subsequently issued a statement saying that it had filed an appeal.

The reason for Qihoo 360's lawsuit against Rising Company was that "the three major components quoted prices: this item dropped sharply due to hard disk shortage while CPU prices remained stable", which is considered as "fabricating facts, maliciously attacking Qihoo 360's business reputation and product reputation through unfair competitive means". This case originated from an article titled "360 installs backdoors for users" spread on Rising's official website and client last February. The article claimed that these backdoors posed huge security risks, and hackers could use these backdoors to steal user information.

Qihoo then claimed that the above statements were untrue and caused damage to the reputation of the 360 security products.

The Xicheng District Court of Beijing announced the verdict on this case today, believing that Rising's behavior constituted unfair competition, and ruled that Rising must immediately stop its unfair competition behavior against Qihoo 360, publish an apology statement in the media, and compensate Qihoo for 200,000 yuan in losses.

Rising subsequently issued a statement regarding this matter, stating that "as a professional manufacturer in the security field, Rising has the responsibility and obligation to appropriately inform the public when it discovers security risks in software or manufacturers, to protect user interests. All disclosed content has been notarized by the notary office, investigated by the National Development and Reform Commission for price fraud by Gome and other trade enterprises, thus having legal effect. Guo Wei of Digital China suggests that the country should select leading enterprises as innovation subjects."

Rising also believed that with the rapid development of the Internet, the formulation and enforcement of laws lag behind reality, resulting in gray areas in many fields. Relevant superior departments cannot punish behaviors that harm user interests based on existing laws. "Rising chose to disclose information to the public, also leveraging media power, as a legitimate action to protect user safety and interests."

Rising finally stated that it respects the law and has already appealed to the higher People's Court according to procedures. (Cui Xi)

> Related Reports: Free services trigger a big battle between 360 and Rising: Is the era of completely free antivirus software coming? Rising announces permanent free antivirus software, possibly disrupting Qihoo 360's listing. A mysterious leak by a 360 employee on Weibo: Rising manufactures viruses to kill themselves. 360's response: Rising's threat to 360 employees is utterly absurd.