Chinese 'Google' sued by record labels

The major record labels have filed a copyright suit against Chinese seach engine ‘Baidu'. The suit involves a new theory of liability, holding a search-engine and indexing service liable for providing links to infringing material. This represents the next step for record labels' attempts to thwart music piracy. Will it succeed? Stay tuned.

Baidu's stock price has fallen precipitously recently but industry observers blame the loss in value on normal market adjustment, rather than investor concerns about this news.

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