The Beijing No.2 Intermediate People's Court entered the first-instance judgment on the case between Baidu and 360, holding that Qizhi Software (Beijing) Company and Beijing Sanji Wireless Networks Company constituted unfair competition and ordering the two companies to compensate plaintiff for reasonably litigation charge and economic losses totaling 385,000 yuan.

Baidu sued 360 for unfair competition and sought 10 million in damages on August 2010. The court found that the defendant labeled Baidu toolbar and address bar as "malicious plug-in and software" in their 360 website, which the court believed falsely describe the software and misled users to delete. All the above mentioned acts constitute unfair competition. So ordered.

(China IP News)