Xunlei Fined RMB 150,000 for Deep Linking," MD 2/04/08 issue), it has been confirmed that the two companies are now cooperating on online video services. ">

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Xunlei, 51TV Bury Hatchet

Sina Tech, 2/20/08

Although Xunlei recently lost a lawsuit filed by 51TV (see "Xunlei Fined RMB 150,000 for Deep Linking," MD 2/04/08 issue), it has been confirmed that the two companies are now cooperating on online video services. Xunlei will provide free online movie and video program downloads of licensed content from 51TV and other partners, and provide the partners a share of advertising revenues.

Xunlei CEO Sean Zou said that 51TV has always been a "key partner" of Xunlei, and the earlier lawsuit was "a misunderstanding". 51TV president Wang Xiao also commented that 51TV had initiated contact with Xunlei from the end of 2007, and said "the lawsuit was about the past, but we should face the future."

The move has left industry pundits to speculate that the RMB 150,000 penalty against Xunlei may end up being overlooked.

Keywords: law litigation 51TV online video online advertising Wang Xiao alliance deep linking Internet penalty Xunlei Sean Zou

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