China's LeTV sues Baidu for illicit competition

Chinese Internet company LeEco, formerly LeTV Holdings Co Ltd, premiered its new brand and logo during the "Global Brand Upgrade" news conference held in Beijing on on Jan 12, 2015.Ablikim Ablimit, LeEco's vice-president of strategic planning and management, delivers a keynote speech on the event.[Photo/Provide to chinadaily.com.cn]

BEIJING -- Chinese online video website LeTV has filed a lawsuit against Internet giant Baidu for illicit competition, accusing the latter of blocking all advertisements while grabbing and playing the online stream of LeTV, a Beijing court said on Monday.

LeTV has been unable to acquire advertising revenue as the pre-roll, webpage and cut-in ads are blocked without authorization when users watch the LeTV online stream via the Baidu Video app, according to the Haidian District People's Court.

Because of the blocked ads, users only see videos without reference to LeTV, and will mistake Baidu as the source of the video, according to the indictment.

LeTV requested Baidu stop the illicit competition and asked for compensation of 1 million yuan ($153,400).

The court has accepted the case, without disclosing the hearing date.

Founded in 2004, LeTV, or Leshi Internet Information Technology Corp, is listed in Shenzhen, with total market value of around 100 billion yuan.