China's largest search engine attempts mediation with music giants --AFP

BEIJING (AFP) - China's biggest Internet search engine Baidu and seven global music giants agreed to enter into mediation on the first day of a high-profile copyright trial, state media said.

The companies including Universal, Warner, EMI and Sony BMG are suing the Nasdaq-listed Baidu whose MP3 search technology provide links to websites which allegedly allows users to illegally download copyrighted music.

The companies are suing Baidu for allegedly infringing the copyright of 137 songs and are seeking 1.67 million yuan (206,000 dollars) in compensation.

Baidu has maintained it is not at fault as it merely provides the search technology and not the offending downloading service.

The Chinese company -- nicknamed the "Chinese Google" -- agreed to try mediation Monday, the China Daily said Tuesday.

The plaintiffs, who also include Cinepoly, Go East and Gold Label, local subsidiaries of the international music giants, said the judge would settle the case if the issue cannot be resolved through mediation.

The case comes after a Beijing court earlier this month ruled in favor of Shanghai Busheng Music Culture Media, EMI's distributor in China, and ordered Baidu to pay 68,000 yuan (8,400 dollars) for unauthorized downloads of 46 songs.

Baidu is appealing that decision.

Company officials Tuesday declined to comment, only to say they hope for an outcome satisfactory to all sides.

At Monday's five-and-a-half-hour hearing, plaintiffs asked Baidu to immediately stop providing online displays and download services for the songs, the report said.

Internet users currently may use Baidu's search engine to locate copies of music stored on the web. When a user clicks on a particular song, the engine provides a direct link to the site where the file is stored.

Baidu defended itself as a neutral search engine that is simply providing basic services, adding that it was willing to work with music companies to explore new business models to provide a legal platform for music searches.

MP3 downloads are popular with youngsters in China, which is seeing an Internet boom, becoming the second biggest Internet market after the United States in just the past few years.

Netease, one of the top three web portals in China, recently shut down its MP3 search function over similar concerns.

For Baidu, however, MP3 searches are a core part of its business, accounting for some 22 percent of its online traffic.

Hmm... I am unsure, but suspect Baidu is partially government-owned. So if the mediation doesn't work and the RIAA does sue, they will make a few enemies in the chinese government.

I would have thought there'd be more comments on this topic. I applaud Baidu's stance and hope that the RIAA gets thrashed for interferring with China's independence and growth. The only thing I see different between Baidu, Yahoo and Google is that Baidu includes top-x (top-10) chart listings. This is just another case of RIAA seeing a company's stock value as money in their pocket. Seems to me to smack of mafia tactics (with lawyers instead of hitmen).