Beijing Times, 5/11/11
Shanghai's Luwan District People's Court has found Chinese internet giant Baidu (Nasdaq: BIDU) guilty of copyright infringement and ordered Baidu to pay RMB 500,000 in compensation to Shanda Interactive's (Nasdaq: SNDA) online literature subsidiary, Cloudary.
The court ruled that as an online services provider, Baidu clearly knew Cloudary held the online distribution rights to certain content, but did not delete or de-link infringing materials in a timely manner after receiving notification from Cloudary, which constitutes indirect infringement.
Baidu said that it plans to appeal the decision.
Editor's Note: For more background on this topic, please see "Shanda Literature Files Baidu Lawsuit" MD 3/16/10 issue.