The fintech (financial technology) company Finda has announced legal action against the business information service 'OpenMon' and the service provider, real estate big data service firm Artiwells, claiming they copied its core service 'OpenUp.' OpenUp is a business analysis platform that has helped increase Finda's monthly active users (MAU).
According to the fintech industry on the 11th, Finda sent a notice of legal action to Artiwells the previous day. In the document, Finda claimed that Artiwells had unlawfully replicated the idea, core components, service method, user interface (UI)/user experience (UX), and other aspects of OpenUp to provide its service. Finda also pointed out that Artiwells had copied its developed and adopted outcomes and expressions.
According to the basis of Finda's claims, the placement of markers allowing visibility of sales and store numbers on the map of each service, as well as the layout of building information, estimated sales, and store lists that users can see upon marker clicks, are identical. Additionally, the 'N new store' indicator above new store markers and the red indication for high sales building markers are also similar. Finally, Finda noted that the adoption of a name (OpenMon) that could easily be confused with its own service name, OpenUp, which has been in operation for several years, is concerning.
OpenUp is a service that analyzes 700,000 business districts nationwide using artificial intelligence (AI) based on over 130 million big data. Assuming a specific industry is operated in a business district, it allows for estimating potential sales. Finda acquired this service in 2022 and, with the goal of alleviating information imbalance, transitioned it to a free service just four months after acquisition, drawing attention from small businesses as well as prospective entrepreneurs.
As of the end of last month, the number of OpenUp users exceeded 248,000, marking a 45-fold increase compared to July 2022, when Finda acquired OpenUp. During the same period, MAU saw a staggering increase, reaching approximately 128,600, a 875-fold rise. Leveraging the popularity of OpenUp, Finda expanded its existing credit loan services and entered the business loan market, which reached 450 trillion won last year.
The OpenMon service provided by Artiwells also offers information about business districts. This service provides comprehensive information including day, age group, and time-based business analysis reports for users such as licensed real estate agents, franchise companies, construction companies, and developers who need business district information. There are aspects that appear similar to Finda's OpenUp, such as the ability to confirm estimates of sales figures, number of stores, floating populations, and industry types in surrounding areas all at a glance.
Finda has determined that the OpenMon service has largely copied OpenUp, prompting demands that Artiwells cease operations or mutually discontinue services. On the other hand, Artiwells, which provides the OpenMon service, countered this claim, asserting that "OpenMon is being provided in full compliance with legal requirements."
First, it explained that UI/UX design is a functional expression to efficiently implement service functions and that, according to Supreme Court rulings, function-centered UIs are not protected by copyright, meaning copying them would not constitute copyright infringement. It also pointed out that regarding trademark rights and brand similarity, the word 'Open' is a generic term in the industry that anyone can use and cannot be subject to trademark claims.
A representative from Artiwells stated, "We believe that the similarities regarding UI/UX, branding, and composition items claimed by Finda do not constitute infringement, and we maintain complete legal operational qualifications," adding that they hope for a reasonable dialogue between the two companies and look forward to healthy competition for mutual development.