On 15 April 2014, Chiung Yao accused Chinese screenwriter and producer Yu Zheng of blatant plagiarism, seeking immediate suspension of the broadcast of his TV series Palace 3: The Lost Daughter, which she alleged to have plagiarized from her 1992 novel Plum Blossom Scar . Yu denied the claim. On April 28, Chiung Yao filed a plagiarism lawsuit against Yu. On December 12, 109 Chinese screenwriters published a joint statement supporting Chiung Yao. A day later, an additional 30 Chinese screenwriters made their support of Chiung Yao known.
On 25 December, the court ruled in Chiung Yao's favor, ordering four companies to stop distributing and broadcasting The Palace: The Lost Daughter, also demanding Yu Zheng to publicly apologize and pay Chiung Yao RMB 5 million (around $800,000) in compensation. China Radio International called it a "landmark ruling".