Maverick China Research

Sohu’s ongoing legal squabbles are indicative of the growing value of the Chinese online video market, as well as its steady progress towards a more legal business model.

BEIJING - As competition intensifies in China's online video sector, Sohu, which has been leading an alliance against pirated material online, is being sued by five different parties, including another member of the alliance.

Two months after leading online video operator Youku.com began lawsuits against Sohu, further suits have been filed against the portal by companies such as state-owned broadcaster CCTV, Xunlei and Wangshang (NetMovie.com). The suits, thought to be related to copyright infringement, have raised questions about the future of the Chinese Online Video Anti-Piracy Alliance, a Sohu-led group of 110 online video companies and external firms set up in September to combat video piracy in China

Taobao.com, a fast-growing e-commerce hub in China where pirated goods are sometimes sold, has fought harder against fake goods sold on its platform in recent months as it seeks partnerships with foreign companies, analysts said Thursday.

The remarks came as Bestseller Fashion Group announced it would open a flagship store for its popular Danish clothing brand Jack & Jones on Taobao, which is owned by Alibaba Group. Dan Friis, cofounder of the clothing group, also told reporters at a briefing that Taobao has strengthened its stance against counterfeit goods, though the sale of those goods may have helped boost the site's growth in past years.

SHANGHAI - Chinese portal Sina and digital out-of-home media company Focus Media will officially call off their proposed acquisition deal tomorrow if the Government does not consent to the merger before then, ending a turbulent 10-month approval process.

Huang Bing, a 28-year-old chemical engineering graduate, is modest about the thousands of dollars he brings in each day selling lotions, mascaras and masks on China's leading online auction site.

Huang's store on Taobao.com has had much success since the soft-spoken entrepreneur, who now employs 30 people, launched it alone two years ago. Huang, a former sales representative for a state-owned pharmaceutical company, now sells up to 50,000 yuan (US$7,300) in make-up each day on Taobao. He stores his goods in an 800 square meter (8,600 square foot) warehouse in Hangzhou, the scenic Chinese city where Taobao and its parent company, Alibaba Group, are headquartered.

The World Trade Organisation's recent ruling that China had broken its rules by restricting the import of foreign media content certainly made the headlines.

But what does the ruling mean for content owners trying to access China?

"Chinese often refer to China Yahoo as ‘jilei’ (‘chicken ribs’), which describes something that has no real purpose of value. Alibaba acquired China Yahoo primarily for its search technology and not as a general portal - Sina, Sohu and others were already too strong. But Alibaba never gave the company a clear purpose.”

BEIJING - China may appeal a World Trade Organisation ruling that its limits on the sale of various types of content from the US are unfair.

A spokesperson for the Ministry of Commerce said in a statement the nation “regrets the decision” and “will evaluate the WTO ruling, while not ruling out the possibility of appealing against that ruling.”

The global ambitions of Alibaba Group, China's leader in e-commerce, showed through as it announced a partnership with a major Chinese bank on Thursday.

Alibaba and Bank of China will cooperate on international business development as well as expanding domestic programs, Alibaba said in a statement. The deal follows a visit to Silicon Valley earlier this year by senior Alibaba executives including CEO Jack Ma. The group met with companies including Google, eBay and Amazon.com to discuss possible partnerships, and Alibaba said topics raised included bringing its online auction and payment platforms to the U.S.