Baidu Co, the China search engine, and Beijing 3721, a Chinese software developer, both filed an appeal earlier this week against a ruling in a dispute between them at the Beijing No 2 Intermediate People's Court.

Baidu, the plaintiff, and Beijing 3721, the respondent, said they were unhappy with the judgment made by the Beijing Chaoyang District People's Court after Baidu was awarded a compensation of US$600 from Beijing 3721 (after seeking US$120,000), while Beijing 3721 is pleading that the earlier ruling be quashed. Beijing 3721 was accused of infringing upon Baidu's copyright and unfair competition.

The district court ruled that Beijing 3721's Chinese search engine had a file that did not allow users to download or run the search software offered by Baidu, one of its competitors. Beijing 3721 was ordered to halt any interference with the installation and operation of search software developed by Baidu. Baidu claimed that the software brought Beijing 3721 an illegal profit of over US$18 million every year.