How Do China's Internet Courts Work?

During the hearing, the internet court will first verify the identities of the litigants. In some cases, if any party challenges the authenticity of evidence submitted by the other party, the judge may, after being authorized by the relevant party, directly retrieve case-related information in relation to specific transactions from the database of other government departments and even companies (e.g., relevant e-commerce platforms).

After the hearing is concluded, the judges make their judgments and send the court decisions through email, text message and/or WeChat message.

WHAT TYPES OF CASES HAVE YOU TRIED USING INTERNET COURTS?

The Chinese courts are organized into a four-level system, which includes the Supreme People's Court (the highest level) and the local people's courts (the High People's Courts, the Intermediate People's Courts and the grassroots people's courts). The internet courts belong to the grassroots people's courts, which are the lowest level and deal with cases involving very small disputed amounts and simple situations. As such, most litigants in cases submitted to internet courts are inclined to file their cases directly without the help of lawyers. Indeed, we have not yet represented clients in any case that went to trial in internet courts.

HOW DO LAWYERS REGISTER WITH THE INTERNET COURT SYSTEM?

The establishment of internet courts is an innovation that integrates the judicial system and internet technology. Although we have not represented any client in internet courts, our lawyers have registered their information in the internet court system. To complete the registration, a lawyer needs to verify their mobile phone number and Alipay account in the system. Completing the registration allows the lawyer to file cases and use the internet court system's other functions. Generally speaking, the registration process is pretty straightforward and easy to handle.

DO CLIENTS HAVE THE OPTION TO CHOOSE BETWEEN FILING A CASE IN A CONVENTIONAL CHINESE COURT AND IN AN INTERNET COURT?

Yes. Each case may have various characteristics and could reflect different connection points linking to different jurisdictions. Unlike the level of jurisdictions and exclusive jurisdictions of relevant PRC courts, so far, there are no mandatory requirements for parties to file cases before internet courts. In other words, clients do have the option to choose between conventional courts and internet courts if both of them have jurisdiction over the case.

HOW DOES THE BLOCKCHAIN TECHNOLOGY FIT INTO THE LITIGATION PROCEDURES?

Unlike conventional courts, all internet court procedures can be conducted online, including filing cases, submitting evidence, cross-examinations, trials and even electronic delivery of the court decisions. Moreover, internet courts can share big data and useful information with other systems by using the blockchain technology. Particularly in a fact-finding procedure, if the litigants have different opinions on the evidence, judges could refer to information stored in other online platforms, such as e-commerce shopping platforms, to verify the authenticity and legitimacy of each piece of evidence.

WHAT ARE THE MAIN PROCEDURAL DIFFERENCES BETWEEN TRIALS IN A CONVENTIONAL COURT AND THOSE IN AN INTERNET COURT?

The major differences between conventional courts and Internet courts are set out below:

WHAT TYPES OF CASES ARE ACCEPTED BY INTERNET COURTS AND WHAT TYPES ARE NOT?

As far as we understand, the scope of cases which can be accepted by internet courts include, but are not limited to, disputes arising from internet copyright infringement, contract and product liability disputes arising from online shopping, disputes over internet service contracts, and disputes arising between borrowers and financial institutions who sign and fulfill loan contracts over the internet.

WHAT ARE THE CHALLENGES FACING LITIGANTS WHEN GOING THROUGH INTERNET COURTS?

The biggest challenge we expect is the reliability of the online system. When filing cases, uploading evidence and attending online court hearings, litigants must have stable internet access. This means a reliable network infrastructure is the basis of internet courts. Moreover, internet courts require litigants to have the basic capability to use relevant technology and devices (e.g., computers and scanners). Therefore, it will be a challenge for someone who is not so educated or familiar with the use of relevant technology and devices (e.g., elderly people) to take advantage of the convenient internet court procedures.

THE HANGZHOU INTERNET COURT HAS BEEN RUNNING FOR A YEAR AND A HALF NOW – WHAT ARE THE BENEFITS?

Judges in internet courts could connect parties from any place in the PRC through the internet to hear cases. This innovative trial mode breaks time limits and ensures that parties are no longer confined to a fixed time and place to participate in a trial. Such an intelligent trial system also liberates judges from heavy work. The average time for a court to open a case in an internet court is only 28 minutes, and the average time period for a case to be decided in an internet court is only 20 days, which includes a 15-day period for evidence proof. Recent news released by Xinhua indicates that, as of January 8, 2019, the Guangzhou Internet Court has accepted 1,861 cases and concluded 951 cases during its first 100 days.

DO YOU THINK OTHER COUNTRIES WILL ADOPT CHINA'S VERSION OF INTERNET COURTS?

It is really hard to assess whether the internet courts in China will be adopted in other countries. The main reason for the success of internet courts is they help improve the e-commerce environment in China. Hence, with developments in global e-commerce, some other countries will likely borrow ideas from China's internet court system and establish similar systems in the future.

Frank Zhuang, counsel

Tony Tang, associate

FenXun Partners