Beijing - Yahoo's Chinese unit has been sued for copyright infringement by U.S. music companies including Warner Music Group, over posting links to illegal downloads, Reuters reported, citing a statement from the International Federation of the Phonographic Industry (IFPI).

The Chinese lawsuit seeks over $700,000 in damages.

"We are surprised and frustrated that [Yahoo] should take this role in China given that they are our partners in other parts of the world," IFPI chairman and CEO John Kennedy told Reuters.

"We believe China can be a very important, profitable market for the music industry in the long term and we want to do everything we can to eradicate piracy, and this is piracy in one of its most blatant forms."

Yahoo China argued that courts have said search providers are not liable for content on third-party sites.

"Yahoo China respects intellectual property rights and supports the fight against music piracy," Yahoo China spokesman Porter Erisman told Reuters.

"The courts have clearly established the precedent that search engine operators are not liable for content posted on third-party websites."

Related Links:
http://tinyurl.com/2zlu98 (Reuters)

http://www.ifpi.org