The Shanghai court ruled that the contract for violating public order is invalid, and the training company spent 140000 yuan to dominate Baidu search users | contract | search

Release time:Apr 14, 2024 02:20 AM

A training company has signed a technical service contract with a network technology company to expand its business. Through the construction of a large number of websites, it aims to achieve keyword "dominance" in Baidu search. But during the product handover, there was a dispute between the two parties regarding the implementation effect of the contract. Recently, the Shanghai First Intermediate People's Court tried the case and ruled that the contract signed by both parties violated public order and good customs, and should be deemed invalid.

Qixue Company is a company engaged in related training business. In order to increase the company's visibility and promote its business, the company has learned that through technical means, it can continue to occupy the top position in the keyword ranking of Baidu search engine to attract users to browse. Qixue Company then approached Yitong Network Technology Company to sign an SEO optimization contract, in which both parties agreed that Yitong Company would provide Qixue Company with website technology development and search engine optimization technical support. During the contract period, the company would construct and operate 24 websites, requiring the keyword "dominant screen". Qixue Company paid a service fee of 144000 yuan, with a service period from June 15, 2021 to June 15, 2022.

After the contract was signed, Yitong Company built a website for Qixue Company and provided SEO consulting services and team training guidance services as agreed. Qixue Company paid 36000 yuan in August 2021, but has not made any further payments.

On September 15, 2021, Yitong Company completed the construction of 21 websites and delivered them to Qixue Company. But that evening, Yitong Company discovered that some websites were banned by Baidu due to suspected content plagiarism. Therefore, it notified Qixue Company and took measures to restore the website, while also sending a screenshot of the website restoration situation to Qixue Company. However, Qixue Company believes that the website being blocked is the responsibility of Yitong Company, and it has not achieved the desired keyword "dominating the screen", so it proposes to terminate the contract. Yitong Company disagrees and sues to the court to demand Qixue Company to pay the final payment and penalty for breach of contract.

The first instance court believes that the contract signed by both parties is a true expression of the parties' intentions and should be considered valid. Qixue Company claimed that some of its websites were shut down due to reasons attributable to Yitong Company, but did not appear in court to respond and provide evidence. On the other hand, Yitong Company provided evidence, which can prove that the reason for the website being shut down is due to Qixue Company's pursuit of accelerating speed and excessive plagiarism. In addition, according to evidence provided by Yitong Company, after some websites were shut down, Yitong Company has restored the websites and provided screenshots to Qixue Company. Yitong Company has completed and delivered 21 of the 24 websites stipulated in the contract, which means that the majority of the service content stipulated in the contract has been completed, and corresponding supporting services have been provided as well as the restoration of the suspended website. It has clearly stated that it does not agree with Qixue Company's termination of the contract. Therefore, its lawsuit against Yitong Company should be supported.

The first instance court ultimately ruled that Qixue Company shall pay the remaining service fee of 90000 yuan and a penalty of 30000 yuan to Yitong Company. Qixue Company was dissatisfied and appealed to the Shanghai First Intermediate People's Court.

After the trial by the Shanghai Intermediate People's Court, it was found that the "SEO Optimization Contract" in this case clearly regards "key word dominance screen" as the main purpose. The core of this purpose is to unfairly exclude the priority display opportunities of other operators through technical means, achieve dense information coverage of users, and monopolize the channels of link relationships with users. The purpose of this contract has been contrary to the basic logic of Baidu search engine algorithms from the beginning, detached from the scope of legitimate commercial competition methods, and triggered technical risks beyond reasonable boundaries. The ecological order of online search engines is related to the interests of non-specific operators and consumer users. According to Article 153 (2) of the Civil Code, civil legal acts that violate public order and good customs are invalid. The purpose and actual performance of the SEO optimization contract in this case have violated the aforementioned public order and should be considered invalid.

Regarding how to determine the value of the labor already paid by Yitong Company, the Shanghai Intermediate People's Court pointed out that both companies should be honest and trustworthy, provide valuable services to users, and should not blindly pursue network traffic and ranking interests, disrupt the order of the network ecosystem. Therefore, it is determined that both parties bear equal fault responsibility for the invalidity of the contract. Although the 21 template websites that have been developed and filed are not difficult to produce, they still belong to valuable assets. Yitong Company has invested corresponding manpower and material resources in this regard, and now the control of the websites has been transferred to Qixue Company. Under the premise of invalidity of the contract, the control of the website does not need to be returned, and Qixue Company should provide reasonable discount compensation. Taking into account various factors, the court has determined that the 36000 yuan already paid by Qixue Company is sufficient to compensate for the template website construction cost of Yitong Company.

In summary, the Shanghai Intermediate People's Court has overturned the first instance judgment, confirmed the invalidity of the SEO Optimization Contract signed by both parties, and rejected the lawsuit request of Yitong Company.

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