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Feb 05, `08 — Three global record companies, Universal Music Ltd, Sony BMG Music Entertainment (Hong Kong) Ltd and Warner Music Hong Kong Ltd, have launched legal proceedings against China’s top Internet search engine Baidu.com, accusing it of violating copyright by giving access to music files, International Federation of the Phonographic Industry said in a press release on Monday, Feb 04.

* New legal proceedings brought against Baidu
* Copyright infringement actions against Sohu and its associate company Sogou
* Yahoo China in breach of copyright violation judgment

After months of fruitless negotiations, legal proceedings have been filed on Feb 04, against the China’s biggest internet company, Baidu. Separate actions have also been brought against Sohu and its associate company Sogou. Meanwhile, 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. Such services have been confirmed as in breach of copyright by the December judgment of the Beijing Higher People’s Court. Each of them is a driver of copyright abuse in China, where the huge potential for the online music sector is being stymied by copyright theft.

China has potentially the largest online music-buying public in the world with as many broadband connections as the United States. Currently, however, more than 99 per cent of all music files distributed in the country 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.

Monday (Feb 04)’s actions follow in the wake of a decisive judgment against Yahoo China in December 2007 by the Beijing Higher People’s Court. The court’s finding that Yahoo China’s music delivery service is illegal under Chinese law sets a precedent for cases against similar operations in China.

Three record companies have now filed proceedings against Baidu. The new claims have been filed with the Beijing No. 1 Intermediate People’s Court by Universal Music Ltd, Sony BMG Music Entertainment (Hong Kong) Ltd and Warner Music Hong Kong Ltd. The three companies are asking the court to order Baidu to remove all links on its music delivery service to copyright infringing tracks that they own the rights to.

Action is also being taken today against Sohu and its associate company Sogou, which operates a similar service. Sogou makes profits through advertising that appears on the service and through sponsorship. Sogou also actively induces and encourages copyright infringement by means of recommendations and charts, while Sohu provides deep linking services through its associate company.

Sohu is the official sponsor of internet content service (ICS) for the Beijing 2008 Olympic Games.

The legal action is being brought by four record companies: Universal Music Limited, Gold Label Entertainment Limited, Sony BMG Music Entertainment (Hong Kong) Limited and Warner Music Hong Kong Limited. The cases were also filed at the Beijing No.1 Intermediate People’s Court. They follow four prior notices that were sent to both companies from July 2007 onward.

The claims against Baidu, Sohu and Sogou will be served on the respective companies by the court after the Chinese New Year.

Meanwhile, Yahoo China has still not complied with the December ruling made against it by the Chinese appeal court. As a consequence, the plaintiffs in that case have now filed execution proceedings against Yahoo China, asking the court to force Yahoo China to comply with the earlier judgment.

More at International Federation of the Phonographic Industry.

SEATTLE & NEW YORK –BUSINESS WIRE– On Dec 27, `07 Amazon.com and Warner Music Group announced that DRM-free music audio downloads from Warner Music Group are now available to customers on Amazon MP3, Amazon’s a la carte MP3 digital music store where every song and album is playable on virtually any personal digital music capable device.

Beginning Dec 27, songs from WMG’s digital audio catalog will be available for purchase and download from Amazon MP3. In addition, Amazon and WMG will make available to consumers digital music products such as album bundles containing exclusive tracks.

Warner had been holding out against using the format because MP3 tracks are easier to share between users and may be freely burned onto CDs.

Amazon’s download store is a major competitor to Apple’s iTunes, which uses Digital Rights Management (DRM) to restrict the use of some of its tracks.

Sony BMG is now the only major recording group not signed up with Amazon MP3, which is only available to US customers at present.

Amazon launched its MP3 download store in September after reaching agreements to sell unprotected tracks from Universal Music Group and EMI. More at Amazon.

Los Angeles, Calif — Dec 03, ‘07 — A federal judge on Monday threw out an antitrust lawsuit brought by the operator of the LimeWire online file-sharing service against a coalition of major record labels, concluding the firm failed to make its case that it has been harmed by the recording companies’ business practices, Alex Veiga of the Associated Press reported.

U.S. District Judge Gerard E. Lynch in New York ruled that Lime Group LLC failed to make its case that it has been harmed by the recording companies’ business practices, and he granted the companies’ motion to dismiss the claims.

Lynch also dismissed several claims brought under state laws “without prejudice,” which gives New York-based Lime Group the option to pursue the claims in state court.

Lime Group’s lawsuit was a counterclaim to a copyright infringement lawsuit brought last year against by record labels owned by the four major recording companies: Vivendi’s Universal Music Group, Warner Music Group Corp., Britain’s EMI Group PLC, and Sony BMG Music Entertainment, a joint venture of Sony Corp. and Bertelsmann AG.

That case, which is still pending, was the first piracy lawsuit brought against a distributor of file-sharing software after the U.S. Supreme Court ruled in 2005 that technology companies could be sued for copyright infringement on the grounds they encouraged customers to steal music and movies over the Internet. More at Google/AP.

“Universal Music Group is in discussions with other major labels to launch an online music subscription service that will be initially free with some digital players, a source familiar with the talks said on Monday.” Reuters is further reporting, “Called Total Music, the service is aimed at boosting Universal’s digital media revenue as CD sales plummet, the source said. It could also help reduce the leverage that Apple Inc has on the digital music market.”

On the same story InformationWeek writes, “The company is working with other major record labels, mobile device manufacturers, and wireless providers to give deliver music in a new way, according to a report on BusinessWeek.com. The move is the latest in a series of developments by the recording industry to shore up profits and regain control they have lost as consumers transition to downloading music — both through iTunes and piracy.”