A leading Chinese software development company intentionally stopped its users from accessing services offered by one of its biggest competitors, a Beijing court ruled yesterday.

The court said the Chinese search engine of Beijing 3721 had a file that did not allow users to download or run search software offered by Beijing-based Baidu Co.

Also yesterday in an unrelated case, well-known Chinese portal website Sohu's indictment against another portal giant, Sina, for alleged copyright infringement and illicit competition, was rejected by the Beijing No 1 Intermediate People's Court due to a lack of evidence. The court also discarded Sina's counter claim.

In the first matter, the Beijing Chaoyang District People's Court ordered Beijing 3721 to stop any interference with the installation and operation of search software developed by Baidu, regarded as China's biggest search engine.

Beijing 3721 was ordered to pay compensation of 5,000 yuan (US$600) to Baidu within 10 days. Baidu paid the amount of money for making a notarization of evidence against Beijing 3721.

But Baidu's initial request for 1 million yuan (US$121,000) in compensation and public apology was rejected. Despite the rebuff, Baidu was gratified with the outcome.

"We hope the court decision can help regulate the Internet market and protect the interests of net users," Bi Sheng, the firm's marketing director, said

The company is still not sure whether it will appeal the decision to a higher court, he said.

Yang Anjin, for Beijing 3721, says his client is not satisfied with the judgment.

"I need further consultation with my client before deciding whether to appeal," he said.

Yang did not accept any infringement toward Baidu, saying: "It is a normal software conflict. Beijing 3721 has continuously informed net users to choose software. If two operating systems, like Windows and Linux, could not work on the same computer, could we say they were violating each others' interests? It is just a technological restriction."

The Sina and Sohu lawsuit was accepted by the Beijing No 2 Intermediate People's Court in May last year. It was one of three cases between the rivals to go ahead since last year.

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