Music giants sue Baidu over MP3 downloads (AFP) Updated: 2005-09-16 14:56
He also noted that music companies were not well-prepared to embrace the
digital music era and encouraged them to explore new business models to provide
a legal platform for music search.
The group also insisted it "has always been an advocate of improving
copyright protection on the Internet and has been in discussion with relevant
parties," according to the Standard.
Although the music companies are seeking compensation, what they most want is
the suspension of services that allow Internet users to gain free access to
copyrighted material, the newspaper said.
As Internet usage has soared in Asia in recent years, the music industry's
revenue has fallen dramatically, largely due to MP3 downloads from unauthorised
sources.
Baidu.com holds a leading share of China's search market at 37.4 percent.
Its stock sale in August on Nasdaq was one of the year's hottest initial
public offerings -- with its shares surging 354 percent in one day, prompting
some analysts to nickname it the "Chinese Google".
Chinese music company Shanghai Busheng Music Culture Media also filed a
lawsuit against Baidu in June alleging unauthorised downloads.
There has been a growing concern among investors over the company's
prospects. Its shares dropped 28 percent in New York Wednesday after two
analysts warned the stock was seriously overvalued.
