Yahoo China's music service violates copyright, a Beijing court ruled on December 20th as it dismissed the company's appeal made in April. According to a press release published on the IFPI website, Yahoo China's music service allows the visitors to download, search and find pirated music straight from its main website, without redirecting them to another pages.

"The ruling against Yahoo China is extremely significant in clarifying copyright rules for internet music services in China. By confirming that Yahoo China's service violates copyright under new Chinese laws, the Beijing Court has effectively set the standard for internet companies throughout the country", John Kennedy, Chairman and CEO of IFPI, said.

"China could be a fantastic digital music market if internet companies like Yahoo China, and their owners, commit themselves to respecting copyright and protecting creators and producers."

Correct me if I'm wrong, but I think this is the first time when such a large company, as Yahoo, is involved into this kind of legal dispute. Sure, it was Google and its long-criticized video sharing service, YouTube, but this time we're talking about music piracy and download services offered straight to the users. And even worse, it is offered in a country where no less than 99 percent of the downloaded music infringes copyright, as IFPI wrote in the press release. Even so, the money brought by the sold music content in China totalled no less than $76 million in 2006, the same source added.

"Our member companies seek partnership, not conflict, with China's internet companies - but that partnership has to be based on proper respect for intellectual property rights. What is deeply regrettable is that Yahoo China repeatedly walked away from the chance to pioneer a legitimate music service in partnership with record companies and instead chose to engage in lengthy and needless litigation", the IFPI official concluded.