UPDATE: Baidu cleared of piracy charges

According to global reports, the music-sector trade body, IFPI, confirmed the news and further expressed disappointment at the court’s outcome.

Reports add that Sohu has also been cleared of the same charge.

"The judgments in the Baidu and Sohu/Sogou cases are extremely disappointing and we are considering our next steps," the IFPI said in a statement.

Of the ruling, a Baidu spokesperson said: “We are pleased with the court's decision and will continue to comply with local laws and regulations”.

The music companies filed their suits in early 2008, accusing Baidu of delivering links to websites that offer illegal music downloads in its search results.

This is not the first time Baidu has been spared by the court. In 2007, a Beijing court cleared the Chinese search engine of copyright infringement following suits issued in 2005 by seven international record labels, including EMI and Warner Music.

Later in 2008, Baidu and the Music Copyright Society of China (MCSC) settled their copyright-infringement dispute out of court, ending their 10-month-long spat.

At the time, local reports cited that the MCSC sued Baidu for Rmb 1 million (US$146,550) in January because the search engine delivered lyrics to more than 50 songs held by the Society in its search results.

Baidu had taken steps to circumvent these issues in the future. In October 2008, it announced a partnership with seven record companies to launch a legal music-streaming channel. The agreement allows Baidu users to stream music from labels including EMI Music, Emperor Entertainment Group and Rock Records & Tapes.