The recording industry has challenged Yahoo Inc! to stop the "massively damaging abuse of intellectual property rights" by Yahoo! China. Yahoo! Inc. owns 44% of Yahoo! China through its investment in the Alibaba Group. The Chinese company has been in court in Beijing trying to contest a ruling that it facilitated mass music piracy through its specialised music service.

Yahoo! China was ruled liable for illegally providing links to copyright infringing music files in a landmark court decision in Beijing in April. Members of the International Federation of the Phonographic Industry (IFPI) claims the site offers a bespoke music delivery service that enables and induces users to search for, play and download infringing music tracks for free without ever leaving Yahoo! China's website.

"It is incredible that the music industry should have to defend its rights in a Chinese court against a company in which an American corporate icon has such a large stake. Yahoo! Inc is one of the best-known international brands on the internet, which runs its own legitimate music services all over the world, including in Hong Kong and Taiwan. Yet in mainland China, Yahoo! Inc is investing in and profiting from the widespread breach of intellectual property rights," IFPI Chairman and CEO John Kennedy said.

Kennedy added: "Yahoo! Inc should be making its name as an architect of legitimate online commerce in China and not allowing its brand to be tarnished with mass copyright infringement." The claims filed by the record companies concerned infringement of tracks by international artists such as Coldplay and Gorillaz, as well as local repertoire performed by singers such as Penny Thai and Ivana Wong.

Source:
Press Release