Chinese IP Law Updates
February 24, 2017

AutoNavi Co. Filed an Unfair Competition Lawsuit against DI DI Co. and Claimed Compensation of 75 Million RMB

Recently, AutoNavi Software Co., Ltd., AutoNavi Information Technology Co., Ltd. (hereinafter referred to as “AutoNaviCo.”), whose products are also known as GAO DE MAP, filed eight lawsuits to Chaoyang District Court. AutoNavi Co. sustained that, (i) Beijing DI DI Infinite Science & Technology?Development?Co., Ltd. (hereinafter referred to as “DI DI Co.”), Beijing XIAO JU Science & Technology?Co., Ltd. (hereinafter referred to as “XIAO JU Co.”), China International Intellectech Corporation (hereinafter referred to “CIIC”) and the former Senior Manager HU of AutoNavi Co. violate trade secrets and constitute unfair competition. (ii) DI DI Co. and XIAO JU Co. are suspected of false propaganda.

AutoNavi Co. claims that, Mr. HU nominally established a labor relationship with CIIC for the purpose of evading the non-competition agreement and actually works for DI DI Co. after leaving AutoNavi Co.. He subsequently urged six senior engineers of AutoNavi Co. to resign and work for DI DI Co. and XIAO JU Co. These six engineers copied AutoNavi Co.’s trade secrets before resignations, which seriously damaged the rights and interests of AutoNavi Co. ?AutoNavi Co. sustained that, their behaviors violate trade secrets and constituted unfair competition and requests the Court to order them to immediately cease and desist from activities of unfair competition, to dismiss above-mentioned seven employees and to make compensation for economic losses for 10 million RMB.

Furthermore, AutoNavi Co. filed an unfair competition lawsuit of false propaganda against DI DI Co. and XIAO JU Co. separately. AutoNavi Co. claims that, DI DI Co. and XIAO JU Co. falsely publicized that, “they are the world’s largest one-stop diversified travel platform”, “their drivers are the best” and “DI DI Co. dominates tailored taxi service in China with the market share of 87% and 99% of online taxi service market”. AutoNavi Co. believes DI DI Co. and XIAO JU Co.’s false, exaggerated and misleading propaganda may disturb the market order and cause enormous losses to AutoNavi Co., thus they shall assume compensation liabilities. Therefore, AutoNavi Co. requests to the Court to order them to stop immediately the acts of unfair competition, to offer a public apology and to compensate economic losses for 5 million RMB.

At present, Beijing City Chaoyang District People’s Court accepted above-mentioned eight lawsuits and they are currently in the process of beginning trial.

If you would like some more personalized review of the news from us, please kindly let us know by writing to: Thank you.