Tech Shout!

Chinese internet search engine Baidu.com has joined hands with well-known Chinese-language record label Rock Music Group (RMG) to offer an online music streaming service.

Under this partnership, RMG will allow part of its music list to Baidu users absolutely free, and both companies will be sharing the income received from internet advertising.

“This partnership with RMG, the world’s leading Chinese language record label, reflects growing industry recognition of the advertising-supported free music streaming model,” said Robin Li, Baidu’s Chairman and CEO. “Advertising- supported music provides more listening options for Internet users and gives online advertisers a powerful marketing platform.”

“RMG has long been a leader in original music production as well as a pioneer in innovative music distribution. By leveraging Baidu’s leading position in the Chinese language search market and its premier digital music platform, this partnership will bring value to music lovers, record companies and advertisers alike,” said Sam Duann, RMG’s founder.

In 2006 Baidu received a clean chit of helping users to download music illegally, in a case brought by some of the world’s largest music companies. The International Federation of the Phonographic Industry, which represents the world’s music companies, said the case against Baidu had been filed on behalf of EMI Group Plc., Vivendi’s Universal Music Group, Warner Music Group and Sony BMG.

Beijing’s First Intermediate Court ruled that Baidu’s service, which offers web links to the music, does not amount to a violation as all the music is downloaded from web servers of third parties. This latest licensing agreement with Rock Music is thanks to the clearance that Baidu received.