Yahoo China loses music piracy case

Yahoo’s China subsidiary has been ordered by the No. 2 Intermediate People’s Court to pay RMB210,000 ($27,000) for aiding music piracy.

The lawsuit filed by the International Federation of Phonographic Industries accused Yahoo China of violating copyrights because its search engine linked to sites that carried 229 pirated songs. It was filed on behalf of 11 recording companies including Sony BMG, Warner Music, EMI and Universal Vivendi.

Leong May Seey, Asia regional director for the federation, said, ‘We’re very pleased with the outcome. We think it is a step in the right direction in creating a legitimate online music service in China.’ But the music companies want damages as well. Leong May Seey said she did not know the exact damages awarded but said they appeared to be well below the RMB5.5 million ($700,000) sought.

She said, ‘We are considering our options with the damages, whether we will appeal or not.’ Yahoo China said it would appeal and stressed its respect for intellectual property rights.

A company statement said, ‘We will appeal this decision because we believe Yahoo China’s music search service both meets and exceeds the relevant legal standards for intellectual property protection. An important principle is at stake in this case — search engine operators should not be held liable for content posted on third-party Web sites.’

Note that the IFPI filed a similar lawsuit last year against China’s most popular search engine, Baidu.com Inc. A court ruled in Baidu’s favor in November. The IFPI is appealing.
Source: Yahoo News