Beijing - Yahoo China has lost its appeal of a Chinese court ruling that found the company's digital music service, which offers "deep links" to unauthorized music downloads, facilitates copyright infringement. The International Federation of the Phonographic Industry (IFPI), whose record label members first brought the case against Yahoo China, praised the ruling.

Tokyo - Yahoo China (NASD: YHOO) has appealed a ruling from a Chinese court that found Alibaba, the parent company of Yahoo China, guilty of copyright infringement for providing "deep links" to sites offering unauthorized songs, lyrics and ringtones, Billboard reported. The Beijing No. 2 Intermediate People's Court in April ordered Yahoo China to pay $27,000 in damages to record labels and remove the deep links from its service.