Selected Papers of The Jurist (法学家), Volume 3
Renmin Chinese Law Review: Selected Papers of The Jurist
Edited by Jichun Shi
Chapter 11: Research on the duty of examination of adwords in the Pay-Per-Click service
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.
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