Baidu files lawsuit against Chinese software developer Qihoo 360

Baidu Inc, the Chinese search engine firm, has initiated a legal proceeding against the Qihoo 360, a Chinese software developer for online security, alleging unwarranted competition. The lawsuit has been accepted by the Beijing No. 2 Intermediate People's Court. An online report says that Baidu has alleged that Qihoo 360’s version 7.0 of Safe PC security software categorizes the Baidu Toolbar as well as the Baidu Address Bar as malware plug-ins for IE (Internet Explorer), which is likely to damage the computers of the users and advocates the removal of the Baidu Toolbar and Baidu Address Bar from their computers. In its petition, the Chinese search engine has appealed to the court to order the defendant to stop all activities related to unmerited competition, stop all insertion Baidu search results in the latter’s 360 "Net Shield" software, cease categorizing Baidu Toolbar as well as Baidu Address Bar as malware and thwart their download, installation and use. Baidu has also requested the court that it orders the defendant to publish a public explanation on its websites for 30 days and also on the SINA Corporation, Beijing Youth Daily, Legal Daily and the Beijing Evening Post homepages. In addition, the Chinese search engine has appealed to the court to direct Qihoo 360 to pay a compensation of CNY 10 million along with another CNY 150,000 for all legal expenses incurred by it.