Kaixin001 seeks more compensation

The dispute over a domain name between China's two major social networking websites, Renren.com and Kaixin001.com, escalated after Kaixin001.com decided to appeal against an earlier verdict in the dispute.

Kaixin001.com announced Tuesday that it has appealed to the Supreme People's Court for judicial review of the verdict in a lawsuit over its dispute with Renren.com.

"Although the court found Renren guilty of infringement, Kaixin001 was not satisfied with the compensation and demanded that Renren stop using the domain name of Kaixin.com, similar to that of Kaixin001," Li Yunde, a lawyer for Kaixin001.com, told the Global Times.

Kaixin001.com demanded a public apology from Renren and compensation of 10 million yuan ($1.53 million), Li said.

On April 11, a Beijing court ruled that Renren.com's parent, Oak Pacific Interactive group, was guilty of violating Kaixin001's legal rights and ordered Renren.com to pay 400,000 yuan ($61,425) in compensation.

The dispute between the two rivals goes back to 2006 when Oak Pacific Interactive group, a Beijing-based Internet holding company, acquired Xiaonei.com and later renamed it Renren.com.

Following the rebranding, Oak Pacific launched a social networking site under the domain name "Kaixin.com," and used a layout resembling its competitor, Kaixin001.com. Kaixin.com later merged with Renren.com. In April 2009, Kaixin001.com sued Oak Pacific for infringing its rights.

Kaixin001.com claimed that the launch of Kaixin.com snatched away at least 30 million of its users.

Both companies are planning IPOs in the US in the coming months.

On April 15, Renren.com, the so-called Facebook of China, submitted its application for an IPO on the New York Stock Exchange. It said it would issue 53.1 million shares priced between $9 and $11 each, according to Renren's filing with the Securities and Exchange Commission.

Kaixin001.com is also reportedly planning a US listing in the next few months.

"Kaixin001's timing of the appeal is aimed at exerting pressure on Renren and also giving Kaixin001 a bigger voice so it can somehow benefit from the publicity," said Dong Xu, an analyst with Analysys International.

Li, the lawyer, denied that the appeal had anything to do with blocking Renren.com from getting listed in the US.

"In pursuing the case, Kaixin001 intends to promote fair competition and a healthy Internet environment in China," Li said.

Renren.com currently has about 160 million registered users. Kaixin001.com, meanwhile, has 120 million registered users.