Yahoo Sued in China Over Pirated Music

Eleven companies have sued Yahoo's China division for about 5.5 million yuan ($710,690 USD) over accusations of copyright infringement, the International Federation of the Phonographic Industry said Wednesday. The group noted that while it believed China was an important market, it was taking steps to eradicate piracy in the country. Studies show that as much as 85 percent of all music in the country is pirated.

Yahoo! China said in response that it respects copyright and supports the fight against piracy, although it said that precedence had been set that shows Web site owners are not liable for the actions of their users. A previous case against Baidu.com was dismissed for similar reasons.