judgmt11

The Plaintiff, Warner Music (Hong Kong) limited, is the producer of the sound recordings entitled "Power" (Singer: Guo Fucheng). The Defendant, My Web Network Systems (Beijing) Co. Ltd., was officially incorporated in August 1999, and in the month it launched a web site called www.Myweb.com.cn in Chinese. The contents of the Defendant's web site include Finance and Securities, Current Affairs, E-Commerce and such services as Music Affairs and Zodiac Questionnaires. Serving as the Defendant company's pop music information platform, the pages of Music Affairs collected a number of web sites containing domestic and foreign songs in addition to posting entertainment news and personal information about stars. Through this web site, network surfers could listen to and download MP3 songs, among which is "Power"(Singer: Guo Fucheng) produced by the Plaintiff. The Plaintiff takes the view that the above acts of the Defendant infringed its legal rights and interests, and the Plaintiff brought a civil action against the Defendant in November 1999.

After the Court considered all the facts, both parties reached the following agreement to settle the case ("this Agreement" or "Mediation Agreement") under the mediation of the Court:

1. After searching a large number of web sites containing sound recordings in MP3 format, the Defendant set up Music Affairs pages in its site to enable its users to listen to and download for free MP3 songs through lists of catalogued and assorted hyperlinks and search engines. My Web (Beijing) stipulates that such hyperlinks prejudiced the neighboring rights of the Plaintiff in its sound recordings, and undertakes that it will cease providing the above-said hyperlink services (already ceased).

2. The Defendant shall apologize to the Plaintiff for the above hyperlink services as they enabled the users to listen to and download copyrighted sound recordings for free without authorization detrimental to the legal interests of the Plaintiff.

3. Upon the entry into force of this Agreement, the Defendant shall not use songs copyright or neighboring rights in which belong to the Plaintiff in the above and any other manner (including hyperlinks) without authorization. If the Defendant is found to have violated this Clause, it shall compensate the Plaintiff 100,000 RMB yuan for the infringing use of each song.

4. Within 10 days after the entry into force of this Agreement, the Defendant shall pay the Plaintiff a total of 87,500 RMB yuan for litigation costs, notarization fees, attorneys' fees, testimonial fees and damages.

5. Upon the entry into force of this Agreement, the Plaintiff shall not bring any legal action or raise other claims based on the same cause of action as in this case.

6. Upon the entry into force of this Mediation Agreement, both parties may publicize its content provided that one party shall inform the other party in advance in case the other party's name is mentioned.

The Defendant shall bear the cost of this case, which is 1,000 RMB yuan (already paid).

This Court finds the above Mediation Agreement in compliance with the laws.

This Mediation Agreement will become legally binding after both parties have signed their respective copies.

Presiding Judge: Dong Jianzhong

Acting Judge: Shao Mingyan

Acting Judge: Song Guang

Date: March 17, 2000

Court Clerk: Liang Lijun

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