Wednesday, February 6, 2008

Music labels target China’s Baidu

THREE global music labels have initiated legal proceedings against China’s largest internet company, Baidu, claiming the company is violating copyright of its members in order to drive advertising revenue.

Universal Music, Sony BMG Music Entertainment and Warner Music have filed claims against Baidu in the Beijing No. 1 Intermediate People's Court. The companies say the action was taken after “months of fruitless negotiation.”

Separate actions have also been brought against internet company Sohu and its associate company Sogou. And Yahoo China faces fresh proceedings following its refusal to comply with a landmark ruling in December confirming it violated Chinese law by “committing mass copyright infringement.”

All of the Chinese companies involved operate similar services based on delivering music to their users via “deep links” to hundreds of thousands of infringing tracks on third party sites, with the aim of driving their own advertising revenue.

“The music industry in China wants partnership with the technology companies – but you cannot build partnership on the basis of systemic theft of copyrighted music and that is why we have been forced to take further actions,” International Federation of the Phonographic Industry chairman and chief executive John Kennedy said.

“It’s a matter of great regret that, despite the clear precedent laid down by the Yahoo China judgment, those internet companies are instead choosing blatant violation of copyright, with the inevitable and unwanted litigation that follows in its wake,” Mr Kennedy said.

China has potentially the largest online music-buying public in the world with as many broadband connections as the United States, the IFPI said.

It claims more than 99 per cent of all music files currently distributed China are pirate and China’s total legitimate music market, at US$76 million, accounts for less than one per cent of global recorded music sales.

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