According to the report of Beijing News, the Supreme Court of China revealed recently that Baidu, the defendant in the lawsuit against Universal, Warner and Sony BMG, has reconciled with its opponent.
Universal, Warner and Sony BMG sued Baidu in 2008, claiming Baidu has infringed the companies’ record producer right by links, online audition and download service through search box and ranking list in its MP3 column. But the claim was rejected by the No. Intermediate People’s Court in Beijing in the first instance, and Baidu is judged of no infringement as an cyber search operator.
On the dissatisfaction on the decision, the companies appealed to the Higher Court of Beijing, and both party concluded the settlement contract (the Contract) in the second instance. As agreed in the Contract, Baidu shall pay the royalty and the companies will hereby license Baidu to upload all the existing songs and new songs. The reconciliation enables the netizen download or play related songs online from Baidu for free. Bridge IP Law Commentary marks it as the success of copyright. Before the settlement, Baidu has already been licensed by EMI, and with the license of this time, China netizens, more than 50% of whom has downloaded MP3 from Baidu, could enjoy the copyrighted one.
Furthermore, Bloomberg reports that U.S. government has removed Baidu from the notorious market list on December 21st 2011 after the settlement. It shows that the settlement won the U.S. government’s support.
“Notorious markets” is a list made by the U.S. Trade Representative(“USTR”) for the 30 plus internet or the real stores aiding the sales of knockoffs around the world, which still currently still lists Taobao, Beijing Silk Street Market and other companies or real markets.
For more posts on our website, please refer to the following articles:
1. The Actual Term of Trademark Registration in China
2. How to improve the success rate of trademark registration in China?
3. Matters for Attention in Trademark Refusal Review in China
4. Introduction of China’s Legal System of Trademark Renewal
5. Matters for Attention in the Patent Preliminary Injunction Application in China(I)
Editor: Mr. Huang Mengren
Paralegal of DeBund Law Offices
Introduction on the Founder & Editor-in-Chief of Bridge IP Law Commentary:
Mr. You Yunting
Partner & Attorney-at-law of Shanghai DeBund Law Offices
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Bridge IP Law Commentary is a website focus on the introduction of commercial laws in China, especially the intellectual property laws. All the posts here are our original works. And all news or cases referred here are from public reports, and our comments or analysis are of due diligence, neutrality and impartiality, representing our own opinions only and are our original works. You may contact us shall you have any opinions or suggestions.
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