Baidu Inc (ADR) (NASDAQ:BIDU) accused by numerous internet firm, as they claim the Chinese biggest search engine firm is violating copyright of their contents. According to the reports a group of Chinese Web based companies including Chinese online-video providers Sohu.Com Inc and Tencent Holdings, as well as Youku Tudou Inc, Dalian Wanda Group and a top U.S. film industry body the Motion Picture Association on Wednesday declare that it is looking forward to clam $49.2 million or 300 million Yuan in damages against Chinese search engine firm for copyright violation by providing access to pirated content, claimed in mutual joint statement today.
Mutually all these companies has claimed that Baidu and some others firm are practicing an automated procedure to access content from the other firms. But rep for the Baidu was not at once available for remarks.
Most of the copyright material is present on Baidu Video App, Baidu TV Stick and Baidu Yingyin without the consent of the owner of the material.
On yearly basis many Chinese online firms spend millions of Yuan, so they can compete in a better way in market, and according to IResearch estimates these companies approximately produce $2.7 billion or 16.2 billion Yuan through advertising revenue in coming year. And to run such content on their sites that are exclusive from all is the May requirement of these companies.
In an e-mailed statement chief executive officer and chairman Charles Zhang, has said the video sectors currently has walked to the crossroads. He also added if his company allow this kind of practices in the content industry and it continue, then it would be a destructive blow.
While in an e-mailed statement Baidu, Beijing-based spokesman Kaiser Kuo, said his company values copyright security and the Chinese search giant has blocked such address and since June blocked over 5.8 million videos.
Due to increase in competition in this sector companies are increasing their investment in the sector Suning Commerce Group Co. which is China’s online video websites invested $250 million in June for a 44% stake on its video website PPTV.com. Youku Tudou invested 289 million Yuan in June. While Tencent, Asia’s biggest Web based firm by market value, also have a video website at v.qq.com. Baidu Inc (ADR) (NASDAQ:BIDU) share fell -0.77% to $150.43 in last trading session.