The lawsuit was started by the Music Copyright Society of China and R2G, two of the largest music distributor in China. In the filing, Baidu is accused of "providing music listening, broadcasting and downloading services in various forms on its Web site without approval, and through unfettered piracy, earning huge advertising revenue on its huge number of hits."
But complicated legal talk aside, the base issue is somewhat hilarious: the two companies want compensation from Baidu for the links to a number of copyrighted songs. Thing is, the songs in question are only 50.
The source of Baidu’s legal issues was the addition of a mp3 search tool on its Web site, enabling users to find (and, subsequently, download) the Chinese music of their choice. The feature has been stripped from the site later on, with users only being able to listen to song files they’ve been searching for.
Baidu’s representatives have yet to issue an official statement on the matter.