As we have reported earlier in February about the rumor that Baidu would resolve its long-time pirate mp3 issue and it also launched its new music service Baidu Ting back in May. Baidu finally revolved its dispute with the music companies, after infringing their copyrights for years with its MP3 search .

Today, the leading search engine in China signed a landmark deal for the distribution of digital music with One-Stop China (OSC), a joint venture whose shareholders are three of the leading global record companies: Universal Music, Warner Music, and Sony Music.

Baidu had been free-riding on the music companies’ intellectual properties to build its popularity among young internet users in China. In its early days, (2003-04) about 50% of Baidu’s traffic was from offering MP3, most of which with no proper copyright.  It caused the major music companies to sue Baidu in the Chinese courts in 2005 and again in 2008.  But the music companies lost their cases in both times.

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Sherman So

Author of Red Wired: China's Internet Revolution, the first book to completely survey the nature of China's internet. (http://redwiredrevolution.com/) She previously was the lead China technology reporter...