Yahoo China, the No. 2 Chinese search engine after industry leader Baidu.com, links to web sites with unlicensed MP3 downloads of hundreds of songs. Warner Music Group, Sony BMG and nine other music firms have sued Yahoo China for alleged copyright violations. Beijing's intermediate court accepted the suit, which was filed in January 2007, seeking 5.5 million yuan in compensation for linking its website to unlicensed music.
The lawsuit comes four months after Baidu.com, operator of China's largest search engine, won a case brought by music firms claiming Baidu allowed links to illegal song downloads on its website. According to the court, Baidu did not violate copyrights because it helped users find music on non-affiliated websites through links and did not offer direct downloads of music.

• March 7, 2007: Musikindustrie wirft Yahoo China Copyright-Verletzungen vor, Heise:
  "Universal Music, Warner Music und neun weitere Plattenfirmen haben gemeinsam Alibaba verklagt, Betreiber von Yahoo China."

• March 6, 2007: Yahoo China sued for music downloads, Shanghai Daily
  "Eleven music companies, including Universal Music Group and Warner Music Group Corp, jointly filed a suit against Beijing-based Alibaba, operator of the Yahoo China Website, which provides online music downloading services."