Back to top

Analyst Blog

A group of Chinese online video providers, including Tencent Holdings Ltd. and Sohu.com Inc., recently accused Baidu (BIDU - Snapshot Report) of having infringed copyrights by providing access to pirated content.

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 past.

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 content.

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 Facebook Inc (FB - Analyst Report), Jarden Corp (JAH - Snapshot Report) and Microchip Technology Inc (MCHP - Analyst Report). All these stocks carry a Zacks Rank #2.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
CLAYTON WIL… CWEI 117.30 +1.78%