Record firms sue Chinese site Baidu

Universal Music Group and two other record companies sued Baidu.com Inc., China’s most-used Internet search site, over illegal music downloads after a ruling against Yahoo Inc.’s music service in the country.

Universal, Sony BMG Music Entertainment and Warner Music Group Corp. sued Baidu in Beijing on Monday, said the International Federation of the Phonographic Industry, which represents the companies. The record companies also sued Sohu.com Inc., China’s third-biggest Internet portal, and its search site Sogou.

China’s market for legally distributed music files, which the federation values at $76 million, makes up less than 1% of global recorded music sales, the group said. It estimates that more than 99% of all music files in China breach copyright laws. The new lawsuits follow a court ruling in December that Yahoo’s service breached Chinese copyright laws.

“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” and the litigation that accompanies it, said John Kennedy, chief executive of the London-based federation.