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Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Silver turns lower after rally, gold retreats | 11:05am EDT "Water for Elephants" a lost opportunity 8:19am EDT Five women brutally murdered in Mexico beach resort 23 Apr 2011 Leaked Guantanamo files reveal detainee details: report 8:40am EDT Special Report: Is Buffett's teflon finally wearing off? 9:28am EDT Discussed 131 Texas governor calls for prayers for rain 129 Obama sees no magic bullet to push down gas prices 64 U.S. sends drones to Libya as battle rages for Misrata Watched NATO jets bomb Gaddafi compound 6:27am EDT Gunfire and tanks in Syria Sun, Apr 24 2011 Chernobyl Legacy 6:24am EDT China to punish Baidu for illegal music downloads Tweet Share this By Melanie Lee SHANGHAI (Reuters) - China's ministry of culture is to punish search engine company Baidu for providing illegal music downloads, a move that may hit its soaring share price. Xinhua, China's official news agency, reported on Monday... Email Print Related News Beijing blaze kills 17 in "illegal" building 2:33am EDT Chinese student gets death for murder that sparked uproar Fri, Apr 22 2011 Special Report: China set to unearth shale power Wed, Apr 20 2011 China growth sizzles, inflation bubbles Fri, Apr 15 2011 Analysis: Chinese consumers altering luxury goods Wed, Apr 13 2011 Analysis & Opinion Tech wrap: Apple beats Google to the music cloud Is China exporting a dotcom bubble? Related Topics Technology » Media » A pedestrian looks at the company logo of Baidu as he walks past their headquarters in Beijing in this March 24, 2010 file photo. China's Culture Ministry will punish Baidu Inc for providing illegal music downloads, Xinhua, China's official news agency reported on April 25, 2011. Credit: Reuters/David Gray/Files By Melanie Lee SHANGHAI | Mon Apr 25, 2011 7:53am EDT SHANGHAI (Reuters) - China's ministry of culture is to punish search engine company Baidu for providing illegal music downloads, a move that may hit its soaring share price. Xinhua, China's official news agency, reported on Monday the government will punish 14 websites that have provided illegal music downloads, including Baidu, China's top search engine. Xinhua reported that an official said the websites continued to provide illegal downloads after repeated warnings not to do so. Details about the punishment were not released. Baidu spokesman Kaiser Kuo said it would act quickly to remove links to files identified by the ministry. "We are aware that songs require approval and have sought to comply with previous notifications from the ministry of culture. But search engine indexing is a continuous process and some files may have reappeared in results," Kuo said. While Xinhua did not say why the songs were illegal, Baidu said it stemmed from a warning issued over a year ago to providers of online music, identifying songs deemed unacceptable. The links to those songs had been removed but new links began to show up because the songs had been uploaded by other users on searchable sites that were found by Baidu, it said. "This will have an impact on their stock price. I think investors in the United States will react on this," said Fiona Zhou, an analyst with consulting firm Pacific Epoch. Baidu shares have risen 54 percent this year, outpacing the 6.3 percent rise in the Nasdaq. Over the past few months, Baidu has been involved in a dispute over its Baidu Library product with a group of authors who said Baidu reproduced their works without permission. Baidu apologized to the authors and took down the infringing material. On April 6, the company said it would launch a licensed music search service in May. Earlier, Baidu reached an agreement with the Music Copyright Society of China (MCSC) to pay fees to the MCSC for every song downloaded using Baidu Ting. The licensed music service would be supported by advertising. Baidu's Mp3 music search has been criticized by the United States as being a "notorious market" for piracy over its ability to provide "deep linking" that steers users to allegedly infringing material hosted on third-party websites. (Reporting by Melanie Lee; Editing by Jacqueline Wong and Dan Lalor) Technology Media Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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