Baidu.com?Inc is to share parts of its music Web page advertising revenue with copyright owners from next month. It is expected to reach more than 10 million yuan (US$1.42 million) this year, the China's biggest search Website said yesterday.
The move will partly ease complaints from record firms who say Baidu provides pirated music download links on its Website, industry insiders said.
Record firms even sued Baidu but the latest case hasn't been ruled on yet.
"Our move proves that music publishers can earn money through cooperation with Baidu," Baidu said in a statement.
"We are not enemies but friends in the digital music era," it said.
According to the plan, Baidu will share advertising revenue from the audition Web pages with publishers, which will provide authorized music content online for free audition, according to Baidu which has more than 60 percent of the domestic online search market.
Total revenue will reach at least 10 million yuan this year and grow rapidly in the next years, according to Baidu, which declined to reveal details of the profit-share portion.
More than 70 companies, including EMI, will get income from Baidu.
Baidu won't share income from its MP3 search Web page, which attracts huge traffic but contains many unauthorized music download links.
Three music industry bodies and several record companies jointly vowed to boycott Baidu recently. They sent letters to advertisers suggesting they carefully consider whether they should continue to place advertisements with "pirating media."
The organizations include The Music Copyright Society of China, China Audio-Video Copyright Association and the International Federation of the Phonographic Industry as well as Universal Music Publishing, EMI and Sony BMG.
R2G, a digital music distribution and licensing company, filed a lawsuit against Baidu.com at Beijing's Haidian District People's Court on May 16.
(Shanghai Daily June 20, 2008)
