Shanda Literature to Sue Baidu for Copyright Violations

Netease Tech, 12/17/09

Shanda Interactive Entertainment (Nasdaq: SNDA) subsidiary Shanda Literature has announced plans to sue Baidu (Nasdaq: BIDU) for copyright violations, alleging that pirated content appearing in Baidu search results and Baidu Post Bar constitute IPR infringement.

Shanda Literature CEO Hou Xiaoqiang said that Baidu does not find and remove search results linking to pirated content in a timely manner, diverting readers from Shanda Literature's exclusively licensed content, and costing signed authors royalties from revenue sharing agreements.

Baidu's public relations department said the problem is being addressed internally, but was not aware that Shanda Literature intends to file a lawsuit.

Editor's Note: Shanda Literature has announced that it will file suit in January, seeking millions of RMB in compensation. For more background on this topic, please see "Shanda Criticizes Baidu and Google for Facilitating Piracy" MD 12/14/09 issue.

Keywords: Shanda Hou Xiaoqiang Internet IPR infringement Baidu Baidu Post Bar Shanda Literature SNDA BIDU law litigation online literature online search

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