Music industry prepares lawsuit against Yahoo China
Tue Jul 4

http://news.yahoo.com/s/nm/20060704/tc_nm/media_yahoo_china_dc_4

LONDON (Reuters) - The world's biggest music companies are preparing a 
lawsuit against Yahoo China for copyright infringement as part of the 
industry's efforts to crack down on piracy.

"Yahoo China has been blatantly infringing our members' rights. We have 
started the process and as far as we're concerned we're on the track to 
litigation," said John Kennedy, chairman and chief executive of the 
music industry trade group the International Federation of the 
Phonographic Industry.

"If negotiation can prevent that, so be it," he added.

Yahoo China officials could not immediately be reached for comment.

Yahoo China is a partnership between Internet giant Yahoo Inc, which 
owns 40 percent of the business, and China's Alibaba.com. The IFPI has 
blasted Yahoo China's search engine for providing links to Web sites 
that offer unlicensed music downloads.

In a speech in Shanghai in May, Kennedy said China was the most exciting 
new market in the world for the music industry but that online piracy 
"threatens to strangle the fledgling legitimate digital music market 
before it has hardly evolved."

The IFPI estimates that about 85 percent of all music consumed in China 
is pirated.

Kennedy singled out Yahoo China and Chinese Internet search leader 
Baidu.com, which was ordered by a Beijing judge last year to stop 
directing users to music download sites.

The music industry has relied on an anti-piracy strategy of lawsuits 
against illegal music services and their users paired with growth in 
legal music services like Apple's market-leading iTunes Music Store. The 
UK music trade group BPI is currently suing the Russian Web site 
AllofMP3.com.


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