Music Copyright Society of China Sues Baidu for Copyright Violation

Music Copyright Society of China (MCSC) recently announced that the trade group has initiated a lawsuit against search engine company Baidu (NASDAQ: BIDU) for providing copyrighted lyrics on its website and profiting from the associated webpage traffic. MCSC claims that it has been negotiating with Baidu since 2005 to resolve the copyright violation issue but could not reach an agreement with the company. As a result, MCSC brought the dispute to Beijing Haidian district court, suing for nearly $150,000 in damages and legal fees. Pearl Research believes the music download search has been one of the main drivers for Baidu’s traffic and a key advantage the company has over Google China. However, various ongoing copyright violation lawsuits bring in questions the sustainability of the company’s music search engine.