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[registrars] Re: China Information Technology News - 9/01/03

  • To: Registrar Constituency <registrars@xxxxxxxx>
  • Subject: [registrars] Re: China Information Technology News - 9/01/03
  • From: "Robert F. Connelly" <rconnell@xxxxxxxxxxxxx>
  • Date: Mon, 01 Sep 2003 07:46:23 -0700
  • In-reply-to: <415303-22003911102650166@commserver>
  • Sender: owner-registrars@xxxxxxxxxxxxxx

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Dear Colleagues:&nbsp; The majority of this issue of China Information
Technology Law Newsletter addresses domain name issues.&nbsp; I therefore
forward it to the RC list completely, without removing any of the
content.&nbsp; Regards, BobC<br><br>
At 06:26 PM 9/1/03 +0800, Lehman, Lee &amp; Xu wrote:<br>
<blockquote type=cite class=cite cite><img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.0" width=1 height=1 alt="2008516.jpg">&nbsp;<img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.1" width=1 height=1 alt="200853d.jpg"><br>
<img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.2" width=1 height=1 alt="2008560.jpg">&nbsp;<br>
<div align="center"><a href="#UN"><img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.3" width=130 height=23 alt="2008583.jpg"></a><br>
<a href="http://www.lehmanlaw.com/Subscribe/it_S.htm";><img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.4" width=130 height=23 alt="20085ad.jpg"></a><br>
<a href="http://www.lehmanlaw.com";><img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.5" width=485 height=77 alt="20085d5.jpg"></a><br>
</div>
<a href="http://www.lehmanlaw.com";><img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.6" width=121 height=100 alt="200860f.jpg"></a>&nbsp;<br>
<img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.7" width=1 height=1 alt="2008641.jpg">&nbsp;<img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.8" width=1 height=1 alt="2008665.jpg"><br>
<img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.9" width=1 height=1 alt="200868f.jpg">&nbsp;<br>
<div align="center"><h4><b>CHINA INFORMATION TECHNOLOGY</b> LAW
NEWSLETTER</h4><br><br>
Vol. 4, No. 12 - September 1, 2003<br>
</div>
<br>
<h4><b>TOPICS THIS ISSUE: </b></h4><br><br>
<ul>
<li>CNNIC Files Lawsuit Against 3721 In Beijing 
<li>Number Of Internet Users In China Rises 15 Percent With 68 Million
Chinese Web Surfers And Counting 
<li>Controversy On Sale Of Domain Name &quot;Guowuyuan.Com&quot; 
<li>Japan, China To Counter Microsoft 
<li>Shanghai Games Group Accused Of Piracy 
<li>Survey: Worm Infects 30 Percent Of China E-Mail Users 
</ul><div align="center"><br>
<font face="Arial, Helvetica" size=4 color="#990000">China Litigation and
Arbitration</font><font color="#CC0000"><br>
</font><font face="Times New Roman, Times"><b><i>Need a Local
Lawyer?<br>
</i></b></font></div>
<br>
Contact <a href="mailto:mail@xxxxxxxxxxxxx";>mail@xxxxxxxxxxxxx</a>
<br><br>
<font size=4>Lehman, Lee &amp; Xu</font> <br>
China Lawyers, Patent &amp; Trademark Agents <br><br>
<div align="center"><h4><b>CNNIC Files Lawsuit Against 3721 In Beijing
</b></h4><br><br>
</div>
China Internet Network Information Center (CNNIC) has filed a civil
infringement lawsuit against 3721 Company in the Beijing Haidian District
People's Medium Court for RMB200,000 (USD 24,000) compensation, alleging
that 3721 made unrealistic insinuations about CNNIC in the public media.
Both companies are currently preparing for the upcoming trial. The first
round of court hearings will begin soon.<br><br>
3721 had argued in the media that CNNIC was neither a government
organization nor a legally established commercial company authorized to
regulate Chinese language domain names or the Chinese language KIPS
(keyword Internet positioning service) market. CNNIC, which launched a
Chinese Internet domain name service on May 26, 2003, has serious
competition conflicts with 3721, whose Chinese KIPS currently holds
approximately a 90% share of the domestic Chinese KIPS market. <br><br>
To date, the ICANN (Internet Corporation for Assigned Names and Numbers),
under the charge of the Chinese government, has allocated four sets of
domain names, &quot;.cn&quot;, &quot;.zhongguo (China)&quot;,
&quot;.gongsi (company)&quot; and &quot;.wangluo (net)&quot;. CNNIC is
currently the only official management department in China for Internet
domain registrations under these domain names. The &quot;.com&quot;
domain is an international Internet domain name system, and is open to
the whole world. Thus, CNNIC has no jurisdiction for the registration of
any Chinese Internet domain name under &quot;.com&quot;. <br><br>
<i>(Source: Interfax) <br>
</i><br>
<div align="center"><h4><b>Number Of Internet Users In China Rises 15
Percent With 68 Million Chinese Web Surfers And Counting
</b></h4><br><br>
</div>
The number of Internet users in China grew by 15% over the past six
months to 68 million, while the country's number of Web sites surged by
28%. <br><br>
China has the world's second-biggest online population, but is far behind
the United States, with more than 165 million. <br><br>
In China, users are mostly young, male and single, according to the
survey conducted twice a year by the China Internet Network Information
Center. <br><br>
China promotes Internet use for business and education, although the
communist government censors chat rooms and tries to block access to
foreign sites run by dissidents, human rights groups and news
organizations. <br><br>
The biggest single group online in China is people aged 18 to 24, making
up 39% of the total. According to the survey, 40% of the users are women.
<br><br>
The survey also revealed that Chinese Web users spend an average of 13
hours online each week, 10 hours of which is spent playing games.
<br><br>
The number of Web sites in China grew to 474,000, with 250,000 registered
using its &quot;.cn&quot; domain-name suffix. <br><br>
The Chinese Internet agency's survey is the most widely watched set of
figures on China's online use, although results can differ widely from
surveys carried out by commercial and academic researchers. <br><br>
<i>(Source: The Associated Press) <br>
</i><br>
<div align="center"><h3><font face="Verdana" color="#FFFFFF"><b>Newsletter
Not Enough?</b></font></h3><br><br>
<font color="#C6DDF2"><a href="http://chinablawg.lehmanlaw.com/";>Visit
our new China law weblog - Updated 5X a week</a><br>
</font><a href="http://chinablawg.lehmanlaw.com/";><img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.10" width=215 height=46 alt="20086b5.jpg"></a><br><br>
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</b></font></div>
<br>
<div align="center"><h4><b>Controversy On Sale Of Domain Name
&quot;Guowuyuan.Com&quot; </b></h4><br><br>
</div>
The Chinese language Internet domain name, &quot;Guowuyuan.com&quot;
(State Council. com), was being sold through a public bidding on Yi Ming
Wang, a Chinese professional Internet domain name dealing website. The
sale had aroused a great deal of controversy in China. Yi Ming Wang
belongs to Xiamen Jingtong Technology Industrial Co., Ltd., which was the
first ICANN authorized Internet domain name registration organization in
China for the international domain name &quot;.com&quot;. <br><br>
According to Wang Zhijiang, director of the CNNIC news office, the
Internet domain name &quot;Guowuyuan.com&quot;, developed and managed by
a U.S.-based company, belongs to a Chinese Internet domain name system,
but that it has not obtained a legal status in China, neither has the
Chinese Internet domain name system it belongs to. <br><br>
Although China's related government departments, such as MII, have no
jurisdiction over the U.S.-based company, which has developed the Chinese
Internet domain name system and tried to sell it in China, it can however
punish its domestic Chinese agencies. To protect China's future public
interests in Chinese Internet domain name registration, MII may likely
negotiate with ICANN for new measures for solving similar problems.
<br><br>
<i>(Source: Interfax) <br>
</i><br>
<div align="center"><h4><b>Japan, China To Counter Microsoft
</b></h4><br><br>
</div>
Japan, China and South Korea plan to develop an original operating system
in a bid to challenge the domination of Microsoft Corp.'s Windows.
<br><br>
Japanese Trade and Industry Minister Takeo Hiranuma is to propose the
plan when he meets his Chinese and South Korean counterparts in Phnom
Penh in the coming week on the sidelines of the ASEAN trade ministers'
meeting, the Nihon Keizai Shimbun and the Asahi Shimbun said, quoting
sources. <br><br>
The accord would be the first signed by major economies, the two dailies
said. Under the expected tie-up, the partners are expected to improve
open-source operating system, like Linux. <br><br>
The three countries are to set up a joint private-sector promotion
committee in mid-November, to include Japanese businesses such as NTT
Data Corp., Matsushita Electric Industrial Co., NEC Corp., Hitachi Ltd.
and Fujitsu Ltd. <br><br>
The project is part of combined efforts to reduce heavy reliance on
Microsoft's operating system, which they say has oppressed their business
strength in the computer software industry. Japan, China and South Korea
have also noted the risk of over-concentration of a single software
product, they said. <br><br>
<i>(Source: AFP)</i> <br>
<div align="center"><font face="Arial, Helvetica" size=4 color="#990000">Need
to File a Patent or Trademark in China? </font><br><br>
Contact LLX at <a href="mailto:mail@xxxxxxxxxxxxx";>mail@xxxxxxxxxxxxx</a>
and click below to download a Power of Attorney: <br>
<i><a href="http://www.lehmanlaw.com/download/Patent%20POA.zip";>General
Patent </a></i><br>
<i><a href="http://www.lehmanlaw.com/download/POA-PCT.zip";>PCT
Patent</a></i><br>
<i><a href="http://www.lehmanlaw.com/download/POA-TR_.zip";>Trademark</a></i><br>
</div>
<br>
<div align="center"><h4><b>Shanghai Games Group Accused Of Piracy
</b></h4><br><br>
</div>
Shanghai Shanda Networking, China's largest online games service
provider, has rejected accusations of piracy and cheating made by its
former South Korean partner - the latest episode in a lengthy and bitter
dispute undermining the mainland company's fast-growing business.
<br><br>
According to Chen Tianquiao, the 30-year-old entrepreneur who founded the
Shanghai company in 1999, Shanda had filed an application for the dispute
to go to arbitration in Singapore in response to threats of legal action.
<br><br>
Actoz, the Korean online game operator, is threatening to sue Shanda for
failure to pay fees on the game it licensed to the Shanghai company, and
has also accused it of piracy in the preparation of Shanda's recently
developed in-house game. <br><br>
&quot;We fully own the copyright of this game,&quot; Mr Chen said, in his
first extensive public comments on the issue. &quot;We invested a huge
amount of time and energy, and used more than 160 designers to develop
it.&quot; <br><br>
With global game giants such as Sony staying out of China because of the
threat of piracy, the mainland market is dominated by Chinese online
games, a development that has allowed companies to operate profitably.
<br><br>
Companies such as Shanda sell RMB35 cards to registered users that give
them 120 hours playing time online. At any one time, up to 800,000 people
are playing online. Even with these cheap rates, Shanda, a private
company, says it made $25m profit last year on revenues of $50m, figures
that industry officials regard as credible. <br><br>
Softbank, the Japanese tech investor, recently put $40 million into
Shanda. The dispute with the Korean company may be significant in
determining the competitive landscape in what is likely to be the world's
largest online games market. <br><br>
Shanda licenced the highly successful game, The Legend of Mir II, from
Actoz in June 2001 on a revenue sharing basis, with the agreement
expiring September this year. <br><br>
However, Shanda stopped paying some commissions to Actoz early last year,
blaming technical problems and the appearance of illegal servers, which
Mr Chen said caused a &quot;flabbergasting sales loss&quot;. He also
said: &quot;But the most important reason is that Shanda has not got the
respect it deserved as a partner.&quot; <br><br>
In an effort to gain independence from South Korean companies, which
dominate the online game industry, Shanda had also begun developing its
own in-house game, a first for China. <br><br>
A series of negotiations to find a compromise have all failed. Actoz
would not comment on the dispute. <br><br>
<i>(Source: Channel News Asia) <br>
</i><br>
<div align="center"><h4><b>Survey: Worm Infects 30 Percent Of China
E-Mail Users </b></h4><br><br>
</div>
An Internet worm that turns computers into spam machines has infected 30%
of all e-mail users in China, the country's top Web security firm
reported recently. <br><br>
More than 20 million users opened and passed along the Sobig.F virus --
called the fastest spreading Web worm ever -- to domestic and regional
networks, Hao Ting, spokeswoman for Beijing Rising Technology
Shareholding Co Ltd, told Reuters. &quot;We haven't seen anything spread
so fast,&quot; she said by telephone. &quot;It could get worse because
there's very limited awareness of viruses and preventive measures.&quot;
<br><br>
Hao said the 30% figure was based on a study of the firm's one million
regular customers and queries at its hotline. The number could not be
independently confirmed by the National Computer Virus Emergency Response
Center, based in the northern city of Tianjin, which said it had not
conducted its own survey. <br><br>
Although Sobig.F does not shut down or paralyze infected computers, it
can crash servers or slow down Windows operations. Messages can be
identified by subject lines that say &quot;Thank you,&quot;
&quot;Movies,&quot; &quot;Details&quot; or &quot;Applications.&quot;
<br><br>
Hao said only about 60% to 70% of Internet users, a total of 68 million
people in China by the end of June this year, had installed anti-virus
software and only half of them updated regularly enough to protect
against mutating viruses. <br><br>
Unsuspecting Windows users who do not take precautions could receive
mountains of junk mail, called &quot;spam,&quot; that the virus was
programmed to send. Users who open the malicious messages turn their own
computers into spam relay stations, experts have said. <br><br>
China, which some call a fertile breeding ground for Internet worms
because of rampant piracy of anti-virus software, could help spread the
virus more quickly to other countries, experts said. <br><br>
South Korean Internet security companies said damages from the Sobig.F
virus were expected to be quite serious before the virus self-destructs
in early September. &quot;There was a huge in jump of virus infections
this morning,&quot; said Kim Jung-hee, a marketing executive at
Seoul-based firm Coconut.Inc. <br><br>
A survey by Coconut and British e-mail security firm MessageLabs said
less than 1% of their clients in South Korea and Japan had been affected
so far, compared to 38.8% in Britain and 31.5% in the United States.
<br><br>
<i>(Source: Reuters) <br>
<br>
</i><font color="#FF0000"><b>Netscape users, </font>please send email</b>
to: <br>
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with<br>
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in the Subject Line.<br><br>
&nbsp;<br><br>
&nbsp;<br>
<img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.11" width=1 height=1 alt="20086e3.jpg">&nbsp;<img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.12" width=1 height=1 alt="2008709.jpg">
<img src="cid:5.2.1.1.2.20030901074349.09f110a0@206.16.184.129.13" width=1 height=1 alt="200872c.jpg"> </blockquote></body>
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