GUANGZHOU, China, July 5, 2021 /PRNewswire/ — Nimo TV, HUYA Inc.’s (“Huya”, NYSE: HUYA) international live streaming platform, recently initiated an emergency arbitrator (EA) procedure at the Singapore International Arbitration Centre (SIAC) against a Moroccan streamer for breaching an Exclusive Cooperation Agreement with Nimo TV. As a result, an interim injunction has been issued to the streamer by the SIAC. By taking swift legal action, Huya has demonstrated that the Chinese Internet company is determined and capable of defending its interests when going global.
The injunction by the SIAC directs that the Moroccan streamer is restrained from carrying out live streaming on platforms, websites, and applications that are not operated by Nimo TV. Additionally, the streamer is prevented from participating in any commercial or promotional activities by any competing platform, including Nonolive, Douyu’s overseas live streaming branch, and the alternative platform that the streamer threatened to switch to. The streamer is also responsible for tens of thousands of dollars of fees, which include the EA fees and Nimo TV’s legal fees.
The international live streaming industry often faces issues when streamers breach contracts by switching platforms. As transnational legal procedures are typically complicated, costly and difficult to execute, many international streamers take advantage of such situations and view their Exclusive Cooperation Agreements as non-binding. Once streamers are offered a higher price, they’ll risk breaching the contracts without worrying about the legal consequences. Contrary to this belief, live streaming platforms, including Nimo TV, highly value the commercial potential of streamers and view them as important partners in content production. In that regard, when going global, it’s crucial for live streaming platforms to ensure that streamers of different nationalities honor their obligations and do not breach contracts.
The EA procedure initiated at the SIAC represents an important milestone for Nimo TV. It only took 14 days from filing the relevant documents to receiving the interim order, which may deter future streamers from breaching their agreements. In addition, the injunction against the Moroccan streamer is likely the first case from the live streaming industry that the SIAC has processed and could provide insights for international live streaming platforms when dealing with the breach of contracts. Nimo TV is now seeking recognition and enforcement of the arbitration decision in the court of Morocco, the streamer’s home country, to secure its interests by legal means.