Xunlei prosecuted before US IPO
Seven Hong Kong and Taiwan based music companies early filed a class action against Xunlei for copyright infringement, asking compensation of totally 20.5 million Yuan, and the case currently has been on trial at Shenzhen Intermediate People’s Court, which threw a gloomy over Xunlei which is preparing a initial public offering in the United State.
According to a source, Xunlei’s stock (XNET) was scheduled to be traded on NSDAQ on July 21 with the price range between $14 and $16. Calculated with the middle prices of $15, Xunlie was initially aiming to raise $112.5 million and the valuation would be up to $912 million.
It’s said the seven musical companies that filed a class action against Xunlei are Sony Music Entertainment Hong Kong Limited, Sony Music Entertainment Taiwan Limitd (Taipei), Warner Music Hong Kong, Warner Music Taiwan, Universal Music Limited Hong Kong, Universal Music Taiwan and Cinepoly Records Co. Ltd.
The seven companies allege, Xunlei’s providing of convenient, high efficient music audition and downloading services for the users on its “Xunlei Music Website” actually facilitates the transmission of the infringing recording products on the internet, which objectively make it participate and help the illegal activities.
The seven companies asked the court to make an order to request Xunlei to stop the infringement, make public apologies and compensate economic loss of total 20.5 million Yuan. Also, the reasonable right projection expenses such as notarization fee, lawyer fee should be paid.
Xunlei argue, according to the internet Safe Harbor Principle, the infringing files and actions all come from the third party server and it has nothing to do with Xunlei.
The plaintiff and defendant all agree to accept intermediation and the case is still in process.
Shenzhen Post Elaine Contributes to the Story.
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