Qihoo files libel charges against daily

Qihoo 360 Technology Co Ltd is suing the National Business Daily for libel over the publication of a report involving the Internet company and its products on ePaper and a website operated by the newspaper, Xuhui District People's Court announced on Monday.

Qihoo 360 said in court that the report posted on February 26, which allegedly faulted the company, was without any factual basis as both the reporter and interviewee were unnamed and none of the 360's staff had been interviewed.

It is demanding the National Business Daily 50 million yuan (US$824,500) compensation for its economic loss.

According to Qihoo 360, the National Business Daily's report used quotes from anonymous sources and its competitors and overstated them with exaggerated details. Besides, the investigation mentioned in the report had never been certified by any authorities.

It claimed such "false report" damaged its reputation considerably.

The National Business Daily however said that it had interviewed several technical experts and made technical validation before publishing the report.

It said all the interviews have been recorded and they had video, documentary and other evidences. The daily said it did not name the reporters to protect their personal safety, and as media, it should enjoy a right to criticism.

It added that the report was intended to alert Chinese netizens to be aware of the online privacy risk.

Qihoo 360, an Internet security company, previously sued the paper for business defamation on February 26 at the Shanghai No. 1 Intermediate People's Court but later changed the accusation to libel.

As libel is not included in unfair competition of intellectual property case, this case was shifted to the Xuhui District People's Court.