Zhongsou, the popular Chinese internet search engine, has been found guilty of copyright infringement and the authorities have ordered the internet company to “stop infringing immediately and pay the maximum penalty of RMB 100,000.” There was also word that three servers belonging to the search engine were taken indefinitely.
In September 2007, the IFPI logged a formal complaint with the Hebei Provincial Copyright Bureau and further investigations led to the revelations that “copyright infringing files accessed by the delivery service were hosted on servers owned by Zhongsou in Cangzhou city in Hebei province.” The ISP Cangzhou Netcom then helped authorities seize the three servers.
The administrative fine of RMB 100,000 that the site must pay is the largest fine for copyright infringement in the history of Hebei province and the first time a site of the nature of Zhongsou has been forced to pay such a fine. Yahoo China and Baidu were found guilty of similar charges but did not pay such a fine.
Leong Mayseey, Regional Director of IFPI Asia, added: “We are pleased with the maximum fine imposed by the administrative authorities against Zhongsou’s blatant and deliberate infringement of our members’ copyright. This should send a signal to other similar infringing music services.
“China has the potential to be one of the most dynamic digital music markets in the world, but legal services cannot compete when household names like Zhongsou deliberately break the law, abuse the rights of others and seek to drive advertising revenue by providing illegal content. We cannot tolerate such abuse of our members’ rights and other internet companies that are breaking the law should be warned that we are coming after them next.”
Result for: internet company
Last month we reported that SoundExchange had killed off Internet radio by upping royalties to levels that cannot be sustained by any company. Pandora, the largest and most popular of current Internet radio companies, admitted that day that they are most likely going to have to shut down if the royalty charges are not lowered.
Yesterday we received an email from a Pandora representative which was very interesting and I will post in its entirety later in this article. In the email, the rep says that the RIAA and SoundExchange have come to their senses and are ready to agree to lower royalties to levels where an Internet company can survive and the trade groups can make the profit they want. It appears there is another roadblock however, one being brought forward by the traditional radio broadcasters, most notably Clear Channel Communications. The entire email as we received it:
Hi, it’s Tim from Pandora;
After a yearlong negotiation, Pandora, SoundExchange and the RIAA are finally optimistic about reaching an agreement on royalties that would save Pandora and Internet radio. But just as we’ve gotten close, large traditional broadcast radio companies have launched a covert lobbying campaign to sabotage our progress.
Yesterday, Congressman Jay Inslee, and several co-sponsors, introduced legislation to give us the extra time we need but the National Association of Broadcasters (NAB), which represents radio broadcasters such as Clear Channel, has begun intensively pressuring lawmakers to kill the bill. We have just days to keep this from collapsing.
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