Friday, February 15, 2008

Sue whom, really?

Just saw this "MPA Members Sue Chinese File Sharing Network Provider"
piece today at PC World website. And it reminds me a discussion I had with friends a few days ago. Our discussion is while a company can be sued for many wrongdoing things, should the institutional investor of the company be sued as well? After all, the investment of those institutional investors did nothing but give the company confidence to continue their business practice. And those investors are sophisticated enough to understand the legal implication of those companies. So in this MPA case, will the MPA sue Google which happen to be an investor of this Chinese File Sharing Network Provider, XunLei? Clearly there is no fundamental business model change before and after Google's investment so Google's investment did help XunLei to continue their business practice in a bigger scope.

Then back to my early post about venture capital money contributed significantly, if not decisively, to the copy-cat movement in the Internet industry in China. Since lots US VCs cannot get China-based innovative biz model right, Chinese entrepreneurs from both mainland and oversea had figured out that the easiest way to get those VC money maybe sell a copy-cat story. And it seems works well. For example, Facebook's China clone,, claimed to received funding money from US angel investors, then was acquired by another bigger company, Oak Pacific that backed by Doll Capital Investment. So even I am a mainland Chinese myself, I quite agree with the feeling of the author of the post "Losing Your Hard Work to a China Copy Cat".

I'd rather to see less money in China but more on true innovation. Who said Chinese cannot develop unique startup?

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