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□CnYES.com., Inc.

was Alleged in Misappropriating the News Reported by


Commercial Times and China Times Express, and Reprinting the News on its
Website as Their Own News, thus Violated Article 24 of the Fair Trade Law

At 512nd Commissioners’ Meeting on August 30, 2001, the Fair Trade


Commission considered a complaint alleging US-based CnYES.com., Inc.
misappropriated the content of the news reported by Commercial Times and China
Times Express, and reprinted the news as their own news on its website, in violation
of the Fair Trade Law.

The case originated from CnYES.com., Inc. during February and March of 2000,
selected news reported by other business entities and placed the news on its website
for the general public to inquire. CnYES.com., Inc. claimed that its activities of
placing news reported by other business entities on its website were merely to test the
capability and efficiency of the corporation’s computers. When those business entities
sent registered letters to CnYES.com., Inc. to object the misappropriation,
CnYES.com., Inc. immediately admitted that the method of news editing on its
website indeed misled the general public. CnYES.com., Inc. later informed those
business entities that it would take the correction measures and would delete all of the
disputed news from its website. Nevertheless, those business entities still filed a
complaint against CnYES.com., Inc..

The Commission’s investigation showed that while CnYES.com., Inc. had


specifically indicated the source of the reprinted news under each news, CnYES.com.,
Inc. had also specified on its website the following statements: CnYES.com., Inc.
owned the copyrights to the content of all reprinted news, graphics, and data, and no
one should reprint, disseminate, publish or forward those information in any forms
without obtaining a written consent from CnYES.com., Inc.. CnYES.com., Inc. would
institute a legal action against anyone who infringes the legal rights of CnYES.com.,
Inc.. Anyone who wishes to subscribe the content of news, graphics or data provided
by CnYES.com., Inc., please contact E-mail: sales@cnyes.com.

The Fair Trade Commission has consulted this case with the competent authority
of the copyright law; the copyright law authority believed the judiciary should
adjudicate this case. The Commission’s further investigation showed that the
Prosecution Bureau of the Taipei District Court has initiated an investigation on the
copyright dispute in this case. While the Fair Trade Law and the Copyright Law are
different in the legislative purpose and regulated activities, and the parties in this case
should resolve their copyright dispute under the copyright law, it is difficult for the
Commission to based on these two reasons to disregard CnYES.com., Inc.’s
anticompetitive acts and exempted CnYES.com., Inc.’s liability under the Fair Trade
Law.

Although CnYES.com., Inc. claimed that its activities of reprinting news


reported by other business entities on its website were merely to test the system
function of its website, and it did not intend to compete for business because the
website was not yet ready for operation, the Commission considered CnYES.com.,
Inc.’s activities were competing for undue profit and thus were ethically condemnable
because CnYES.com., Inc. took advantage of other business entities’ fruit of labor by
reprinting other entities’ reported news as its own news on its website for the purpose
of promoting business and soliciting advertisements.

In addition, based on CnYES.com., Inc.’s statement on its website that


CnYES.com., Inc. owned the copyrights to the content of all reprinted news, graphics,
and data, the general public would indeed be misled to believe that CnYES.com., Inc.
was associated with other business entities which were the source of the news. The
general public would then stop surfing other entities’ websites because they would
think that they could obtain all news reported by other business entities on
CnYES.com., Inc.’s website. As a result, CnYES.com., Inc.’s activities took away
other entities’ business by taking away their customers and advertisements.
The Commission therefore determined that by reprinting other business entities’
news as its own on its website, CnYES.com., Inc.’s activities were patently unfair acts
sufficient to adversely affect the trading order, in violation of Article 24 of the Fair
Trade Law. Pursuant to Article 41 of the Fair Trade Law, the Commission imposed
NT$350,000 fine on CnYES.com., Inc..