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Yahui, Song; Yutong, Chen --- "Research on the duty of examination of adwords in the Pay-Per-Click service" [2015] ELECD 580; in Shi, Jichun (ed), "Renmin Chinese Law Review" (Edward Elgar Publishing, 2015) 283

Book Title: Renmin Chinese Law Review

Editor(s): Shi, Jichun

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781784715809

Section: Chapter 11

Section Title: Research on the duty of examination of adwords in the Pay-Per-Click service

Author(s): Yahui, Song; Yutong, Chen

Number of pages: 21

Abstract/Description:

As a new business promotion model, the Pay-Per-Click (PPC) service has brought many challenges to the current structure of Chinese laws. There exists a heated debate over the following question: when a keyword used by a client on a network to implement PPC violates the intellectual property rights of a third party, does the conduct of those search engine service providers who provide technical support constitute indirect infringement? The legal nature of the PPC is the key basis to solve this issue. Despite the fact that the existing law is silent on this issue, the wisdom of the judges in judicial practice has led to a relatively consistent judicial body of opinion, which concludes that the service providers shall take the initiative in examining the Internet keywords. The judicial opinion reflects economic rationality, which can make full use of the search engine service providers’ advantage in information and ‘private monitoring’ to restrain ‘free rider’ behavior. At the same time, they can protect the intellectual property rights more efficiently and also provide guidance to the market of the PPC service.