Baidu Deals With Labels

Top Chinese search engine Baidu has expanded its ambitious legal downloading venture by signing an agreement with major international record labels, ending years of disputes over the company’s alleged encouragement of illegal downloading.

The deal was concluded with One-Stop China, a joint venture of Universal Music, Warner Music and Sony Music. It will cover the three labels’ catalogues and future releases, which will be made available for download or streaming from Baidu’s servers.

According to the International Federation of the Phonographic Industry, the music industry made about $64 million in China in 2010, as opposed to $4.2 billion in the U.S.

Baidu controls 80 percent of Internet traffic in China.