A group of Chinese online video providers, including Tencent
Holdings Ltd. and Sohu.com Inc., recently accused
) of having infringed copyrights by providing access to pirated
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China has been in the news for its weak intellectual property
legislation. It is only recently that the Chinese government has
taken some stern measures regarding the protection of valuable
intellectual properties. Due to this weak IP legislation, it had
entered into innumerable disputes with the United States in the
Baidu, which is China's largest search engine, has been investing
funds in an attempt to build its video business. It now appears
that the company feeds copyrighted content into its own web and
mobile video services. The video search also leads users to
places where they can download pirated material.
The conglomerate of Chinese Internet firms, supported by the
Motion Picture Association of America (MPAA), is seeking 300
million yuan ($49.2 million) as compensation for damages from
Baidu and QVOD for copyright violation. They are claiming
that some unauthorized content is available on Baidu's video
search, Baidu Yingyin, Baidu Video App and Baidu TV Stick. They
are accusing Baidu of using an automated process to obtain this
content from other companies.
Baidu maintains that it is against piracy, but according to a
Reuters report, the company refused to negotiate with Sohu until
QVOD agreed to stop pirating videos. QVOD denied any wrong-doing,
saying that it was just a video player and did not provide
Baidu, Inc. provides Internet search services in Chinese. It also
offers a Chinese language search platform for businesses to reach
their customers. Baidu earned 3.25 billion yuan in advertising in
the third quarter and is estimated to create 16.2 billion yuan in
sales next year.
Currently, Baidu has a Zacks Rank #2 (Buy). Other stocks that
offer an attractive investment option this season are
Microchip Technology Inc
). All these stocks carry a Zacks Rank #2.