China Business

A Chinese court has agreed to hear two multi-million dollar copyright infringement claims brought by major record labels agains Baidu, the Chinese search engine company, and Web portal Sohu, according to the International Federation of the Phonographic Industry (IFPI). The $9 million claim against Baidu is brought by Universal Music Group, Sony BMG and Warner Music, who will argue that the search engine aids copyright infringement by providing "deep links" to unauthorized downloads on third-party sites. The IFPI said in a statement: "The claim is the tip of the iceberg in a copyright infringement test-case that could expose the Chinese internet giant to a multi-billion dollar liability," adding that the current claim covers just 127 tracks -- "a small representative sample of the wider infringement." The same three major labels, along with local company Gold Label Entertainment, have also filed for $7.5 million in damages against Sohu. The IFPI claims that "over 99 per cent of all music online in China infringes copyright." (Digital Media Wire, 4/7/08)