(Yicai Global) June 23 -- Qvod Technology Co., operator of what was one of China's most popular video-sharing sites, has made a second appeal against a CNY260 million (USD39.5 million) fine for copyright infringement after Internet giant Tencent Holdings Ltd. [HKG:0700] lodged a complaint.
The Shenzhen-based company's appeal was heard by Guangdong Provincial Higher People's Court on June 21.
The Market and Quality Supervision Commission of Shenzhen Municipality imposed the administrative fine three months after Tencent accused Qvod in March 2014 of infringing its exclusive online broadcasting rights. Its first appeal was dismissed.
During the second hearing, Qvod focused on whether the original ruling was legally substantiated and whether content displayed on its video player constituted an infringement. Shenzhen's Market and Quality Supervision Commission stated that it was duty bound to regulate and protect intellectual property rights, the company was implicated in many infringement cases, and it has been convicted of infringement by the courts, meaning that its infringements are indisputable.
Qvod founder Mr. Wang Xin was prosecuted in August 2014 on charges of disseminating pornographic material for profit as the company's principal. His case is still pending final judgment.