Police raided Shenzhen-based Kuaibo Technology’s head office on the morning of 22 April 2014, part of the authority's latest efforts to crack down on China's prevalent online intellectual rights infringements and on pornography, according to a Tencent report published on Wednesday.
Insider sources say the raid and investigation was jointly initiated by the police and the national copyright administration authority, and was related to the recent national campaign to “Eliminate Pornography and Illegal Publications - Cleanse the Internet 2014”.
Kuaibo and its product QVOD, a peer-to-peer (P2P) video player and download capability, was among the first and best-known victims. Despite the raid, the company insisted it is “operating normally”.
On 16 April, Kuaibo announced it would shut down QVOD’s server and terminate all video services that are based on its P2P technology.
According to the report, QVOD’s previous success was based on its media streaming system which significantly lowers operating expenses for small and medium-sized web sites, and allows administrators to directly publish and manage their video resources. But due to a lack of oversight and monitoring, a large quantity of pirated videos and pornography was uploaded to servers and subsequently distributed.