With the first instance decision on Beijing's first malware (malicious software) lawsuit made, Baidu prevailed in the unfair competition and copyright infringement lawsuit against Shanghai-based Henbang Media Group and Beijing Ruicong Technology.

Baidu claims that Henbang is the copyrighter owner of a software titled Henbang Little Secretary while Ruicong is its general distributor in Beijing.  From August 2004, after keywords were input at baidu.com, that software would foist ads on baidu's search result pages, dramatically altering the pages.

The Beijing First Intermediate People's Court finds that Henbang takes advantage of baidu's reputation and market share for its own commercial good.  By foisting ad pop-ups on baidu's search result pages , Henbang prevented baidu from serving its users at its own disposal and undermined baidu's business operation.  Unfair competition is constituted.  When knowing or should have known the functions and ways of execution of the said product of Henbang, Ruicong helps Henbang in soliciting and maintaining Henbang's ad service.  Ruicong is deemed to have wrongful intent and shall bear joint liability.

In view of the above reasonings, the court orders Henbang and Ruicong  to pay damages in sum of 300,000 yuan to baidu.