Chinese ad agency wins lawsuit against Microsoft

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BEIJING -- Microsoft's Chinese subsidiary has apologized to a Chinese ad agency and paid it $24,096 in compensation for copyright infringement, according to a report in China Daily. The decision was handed down earlier this week by Beijing Second Intermediate People's Court.

According to the lawsuit, last November Microsoft asked Sangxia Advertisement Co. to design a newspaper advertisement. Sangxia gave Microsoft an estimated cost of the advertisement and submitted a draft design three days later. Microsoft accepted the draft design, but instructed the company to revise it. However, the two sides did not agree on the design's cost of $960 to $1,800. As a result, the ad agency did not give Microsoft a final design.

Microsoft soon ran an ad in newspapers in Beijing, Hangzhou and Xi'an that Sangxia claimed was based on its draft design, without its permission. Sangxia, which has won many awards for its public service announcements, then sued Microsoft for copyright infringement.

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