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Your position:Home->china news-> Two Social Networking Sites Goes to Court
The operator of one of China's most popular social networking services, Kaixin001.com, has filed an unfair competition lawsuit against Beijing-based online entertainment company Oak Pacific Interactive, which started a competing service in October under the very similar name of Kaixin.com.

The lawsuit has already been accepted by the Second Intermediate People's Court of Beijing, Sina.com reports (in Chinese). In the suit, Kaixin001.com has asked that Oak Pacific Interactive stop using the Kaixin.com name for its social networking site Kaixin.com. It is also seeking a public apology, said Li Yunde, the plaintiff's lawyer.

Oak Pacific Interactive published an announcement this morning (report in Chinese here). It confirmed the lawsuit by Kaixin001.com, and said that the company 'will take an active role on this issue to protect the legal rights of the company.'

Kaixin001.com declined to comment on the lawsuit.

The plaintiff's site, Kaixin001.com, was launched in March 2008 and had recorded 20 million registered accounts and 700 million page views by April 2009, according to Chinese-language media. It is best known for its addictive online games, including some that are similar to Facebook's 'Parking War' and 'Friends for Sale.' To monetize its traffic, in December Kaixin001.com began placing in-game advertisements in its Web game apps.

But the rapid growth of Kaixin001.com posed a direct challenge to Xiaonei.com, currently the biggest and most influential social networking Web site in China, which also happens to be owned by Oak Pacific Interactive. Created in 2005, Xiaonei.com, like Facebook before it, started out by focusing on college students (its name, in Chinese, means 'on campus'). It was acquired by Oak Pacific Interactive in 2006 and currently has around 70 million registered users, half of whom use the site at least once a month.

When Oak Pacific Interactive launched Kaixin.com, it also adopted a layout and game options that looked a lot like those of Kaixin001.com. The new Kaixin.com soon became popular, perhaps in part because some users thought they were logging onto Kaixin001.com.

In its first four months of operation, Kaixin.com recorded eight million registered users and an average of a million daily visits, according to Southern Metropolis Daily. In January, the site introduced an open platform, which allows third-party developers to place apps and branded advertisements on the site.

The launch of the Kaixin.com by Oak Pacific received considerable media attention. It is also adding to the competition for ad revenue in China's crowded SNS sector.

'Kaixin.com has been doing well,' said one person familiar with the situation, 'it has attracted quite a few advertisers.'

In addition to the two networking sites already owned by Oak Pacific Interactive, the company is reportedly preparing to launch a third networking site, Mop Hi, linked to its existing Mop.com community Web site. Information from the site suggests that it's now under beta testing. Oak Pacific Interactive did not respond to questions on the new site.

Juliet Ye


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