Supreme People's Court mediation, A- share two giants reconciliation!
DATE:  Apr 30 2024

the litigation dispute between fuxin software (688095) and Jinshan office (688111), the two major office software giants in a share, ended in settlement.

according to fuxin software's disclosure on the evening of April 30, the company recently received the "civil mediation document of the supreme people's court of the People's Republic of China". the main mediation results are as follows: Jinshan office and Zhuhai Jinshan office software co., ltd. (Jinshan office sun company, hereinafter referred to as "Zhuhai Jinshan") jointly paid the agreed compensation to fuxin software. After the above compensation was fulfilled, there was no dispute between Fuxin Software and Jinshan Office on the alleged behavior of "Jinshan Ciba" software.

The dispute between the two sides began several years ago. Fuxin Software was disclosed in January 2022. At the end of 2019, the company found that 35 Jinshan Ciba software published on Jinshan Office official website, Jinshan Ciba official website and third-party download stations used the PDF technology of Fuxin software to realize the function of "exporting PDF document format" of Jinshan Ciba.

in the view of fuxin software, the above behavior of Jinshan office directly and completely plagiarized the fuxin PDF generation and development package software developed by the company based on PDF engine, thus infringing the copyright of the company's computer software.

at that time, fuxin software requested the court to order Jinshan office to compensate for the loss of 35 million yuan and pay related expenses. At the same time, Fuxin Software requested the court to order Jinshan Office to apologize publicly.

After the case was accepted by the Fuzhou Intermediate people's Court (hereinafter referred to as "Fuzhou Intermediate people's Court"), during the trial, Fuxin Software applied to add Zhuhai Jinshan as a co-defendant in the case.

in April 2023, Fuzhou intermediate people's court held a public hearing to hear the above case, and ruled in the first instance that Jinshan office and others should stop the infringement, I .e. stop using software copies that infringe the copyright of "fuxin PDF generation development package software" in "Jinshan ciba" software and stop publishing infringing "Jinshan ciba" software on the internet platform. Compensation for the corresponding losses and expenses of Fuxin software totaling 10 million yuan; Apologize to Fuxin software.

For the first instance judgment, Jinshan Office and Zhuhai Jinshan appealed against the judgment. In the course of the trial, the Supreme People's Court presided over the mediation, the parties to the proceedings reached a settlement.

Fuxin software said that this is the settlement of the second instance mediation, and the defendant/appellant of the second instance shall bear the liability for compensation after the mediation reached by both parties, which will not have a significant adverse impact on the daily operation of the company, nor will it have a negative impact on the current and future profits and losses of the company. However, there is a possibility that the other party will not meet its payment obligations as promised.

According to public information, as the two giants of domestic office software, Jinshan Office has cooperated with Fuxin Software in its early years.

in November 2011, fuxin software and Zhuhai Jinshan signed the "software cooperation development technology agreement". the name of the agreement cooperation project is "OFFICE document format to PDF document format".

In recent years, the two sides around the development of PDF technology, the use of a large number of disputes, and triggered a related lawsuit.

in may 2016, fuxin software sued for the termination of the "software cooperation development technology agreement" between the two parties and claimed 0.1 billion yuan on the grounds that Jinshan office used the "OFFICE document format to PDF document format" technology stipulated in the above-mentioned 2011 agreement in its WPS office software, which constituted a breach of contract.

In April 2020, the Beijing Intellectual Property Court ruled that the "Software Cooperative Development Technology Agreement" signed by the two parties in November 2011 was terminated on November 18, 2014, and Zhuhai Jinshan compensated for the loss of 300000 yuan (the final judgment was revised to compensate Fuxin Software for 1.5 million yuan).

In November 2018, Fuxin Software filed a lawsuit on the grounds that Jinshan Office used Fuxin Software's PDF technology in four versions of WPS office software and infringed the company's computer software copyright.

from the perspective of operation, there is a big gap between the performance of Fuxin software and Jinshan office. In 2023, Foxit Software's revenue was 0.611 billion yuan, up 5.33 percent from the same period last year, while the loss was 90.941 million yuan, a significant increase over the previous year. The company said its revenue growth has not increased significantly, due to the deepening of the accelerated subscription transformation. For the loss, the company claims that it has invested a lot of research and development expenses due to its layout of new products, while the new products are still in the research and development period or the initial market promotion period, and have not yet covered the current expenses.

Jinshan office realized operating income of 4.556 billion yuan, up 17.27 percent year on year. Net profit was 1.318 billion yuan, up 17.92 percent year on year. Jinshan Office said its membership upgrade enabled individual subscription growth, WPS AI opened public testing and accelerated commercialization. At the same time, the company's domestic institutional customer business also rose year-on-year. For example, the number of paying enterprises in the public cloud service sector increased 83% year-on-year.

by the end of 2023, fuxin software had applied for 236 patents and obtained 194, including 138 software copyrights. Jinshan Office applied for 4074 patents and received 2493, including 720 software copyrights.

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