Copyright Dispute Buried Hidden Trouble in Thunder's Application to Nasdaq

14:31, June 30, 2011        

June 9 of Beijing Time, Thunder submitted a listing application to the Securities and Exchange Commission (SEC) of the United States, planning for IPO in Nasdaq, the financing up to as much as 200 million dollars and the leading underwriters being JP Morgan Chase and the Deutsche Bank.

  Thunder is currently China's largest download service provider, occupying 78.7% of China’s software market. In addition, Thunder also operates a series of businesses, including online video services. Though the revenue of Thunder keeps a strong growth, in recent years the increasingly troubled copyright dispute has become a big problem.

  In fact, Thunder is highly aware of its copyright problem, who clearly points out in the risk warning column of the prospectus that "the company may continue to face infringement litigation and related compensate claim". Public data show that there are still 33 infringement litigations against Thunder not yet ruled, the total claim amounting to approximately 21.8 million yuan (3.4 million dollars).

  In the first quarter of 2009, 2010 and 2011, Thunder respectively received 108, 126 and 10 accusations.According to the data of part of the market agencies, from mid-March to mid-May, in the 170 Nasdaq-listed Chinese companies, share prices of about 130 fell, among which 46 decreased at more than 30%; in the 77 New York Exchange-listed Chinese companies, share prices of 52 fell, 12 down more than 30%. In addition, frequent share breaks of Chinese companies also make American investors get cold feet.

  By IP Channel of People's Daily Online

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