China's online video platform LeTV recently launched a lawsuit against its competitors, Iqiyi and Youku, for unfair competition and gaining illicit profits, demanding that the two sites stop their illegal activity and compensate LeTV in the amount of 1 million yuan ($154,400).

According to information published by the People's Court of Haidian District in Beijing, LeTV claimed that Youku and Iqiyi posted videos from LeTV, but blocked the logo and address of its website, concealing the true source of the videos. The company added that its competitors also blocked the revenue-generating advertisements LeTV inserts in and before its videos.

LeTV claims that they invest billions of yuan each year buying the copyrights of movies, dramas and TV shows, and their profit is derived from advertisements inserted in the videos. But because of the actions of Iqiyi and Youku, web users did not know the videos they were watching came from LeTV. In addition, Iqiyi and Youku used videos bought at a high price by LeTV at no cost, and gained profits through their own advertisements and network flow. It also improved their user satisfaction and loyalty, LeTV added.

LeTV believes that Iqiyi and Youku have caused huge economic losses to the company through unfair and illegal means. With the lawsuit, LeTV hopes to stop their behavior and be compensated for those losses. The case is still under investigation.