Chinese Cos. Can't Beat $2.2B Suit Over Code Theft

Law360, New York (August 4, 2011, 7:30 PM EDT) -- Ruling that U.S. courts have jurisdiction in the case, a California federal judge on Monday denied motions by three Chinese companies seeking to dismiss a $2.2 billion copyright suit alleging they developed Web-filtering software using code stolen from Cybersitter LLC.

Defendants Haier Group Corp., Beijing Dazheng Human Language Technology Academy Ltd. and Zhengzhou Jinhui Computer System Engineering Ltd. had argued that U.S. courts do not have personal jurisdiction over them and that the case should be heard in Chinese courts.

U.S. District Judge Josephine Staton Tucker rejected all of their arguments, holding that U.S. courts have jurisdiction because the defendants allegedly...

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