Chinese courts handed the world's recording industry a significant victory Thursday, finding the search giant's Chinese music service was committing copyright infringement.Under new laws passed by the country last year, a Beijing court found that Yahoo China violated copyright by allowing users to search, download, and play pirated music from its Web site.

http://www.betanews.com/article/New_...ion/1198262361

I hope companies begin to realize that they have to be extremely careful as they try to do business in China. Yahoo has taken an extreme beating - though I won't say it's unjustified - over the past year.

You don't say; one of Yahoo's founders is Chinese. He is still running the company today.

http://yhoo.client.shareholder.com/press/management.cfm