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JunHe Represented SAP and China Datacom in their Cloud Service Dispute and Won the First Instance in the Guangzhou IP Court


In December 2014, SHENGYI TECHNOLOGY CO., LTD. (“SYTECH”) signed a series of contracts with the cloud services provider SAP China Datacom Corporation Limited (“China Datacom”) to purchase the China-operating SAP cloud service products of China Datacom. The two parties then argued with the execution of the cloud service contract, and SYTECH filed a lawsuit with the Guangzhou IP Court, setting China Datacom and SAP (China) Co., Ltd. (“SAP”, “us ”combined with China Datacom) as co-respondents, and asking us to pay a large sum for penalties and compensation for their loss.

JunHe, as the agent for China Datacom and SAP, won the first instance in the Guangzhou IP Court (the judgement was delivered on November 26th 2018), the claims of SYTECH were rejected by the Guangzhou IP Court, and the responding opinions and partial counterclaims were supported. Since the “cloud service” is a cutting-edge model of technological services in the computer field, related disputes in judicial practices are rare. The JunHe dispute resolution team conducted deep research into the “cloud service” related issues, and cooperated with technology experts from China Datacom and SAP closely, providing clear and thorough analysis opinions on the core technology issues, and main arguing points of the judges’ concerns. The JunHe team also provided accurate and professional analysis on the characters of the cloud services, legal statue and delivery of cloud services, with all of the analysis being supported by the court. The JunHe team’s performance broaded the area of practice for JunHe and provided a deep influence on the judicial recognition of cloud services, the supporters of cloud services, and the legal statue of responsibility of operators. 

This case is not only a cloud service related technology dispute, but also the most influential case won by SAP and China Datacom in China. The JunHe team’s solid legal professionalism, rigorous working attitude, high-quality of legal services and top-tier legal professionalism were highly recommended and evaluated by the clients.

The leading partners for this project were Ms. Christine KANG and Ms. WANG, Lihua.

JunHe is the only Chinese law firm to be admitted as a member of Lex Mundi and Multilaw, two international networks of independent law firms. JunHe and selected top law firms in major European and Asian jurisdictions are “best friends.” Through these connections, we provide high quality legal services to clients doing business throughout the world.