Aug. 17 (Bloomberg) -- Chinese Internet Web portal NetEase Inc., one of China 's three largest U.S.-listed Internet companies, has stopped its music search service because of concerns about copyright piracy, the company said.
``This move is out of concern and respect for copy rights,'' the Beijing-based company said in an emailed statement, quoting cofounder William Ding. The company did not offer music downloads itself and only helped users to find sites that offered free music downloads, Shanghai-based spokesman Jerry Lin said in a telephone interview from his office in Shanghai .
``We're in support of legal MP3 downloads,'' Lin said in reference to the technology that allows people to download music from the Internet.
There are more than 7,000 music sites in China , and almost all of them offer free music down loads without having obtained legal rights from music publishers, said Jun Wu, president of Beijing-based R2G.net, a company that helps recording companies track down online music pirates in China .
``This is good news,'' Wu said. ``This is part of an industry trend.'' R2G has led an effort by music publishers to track down online pirates. The company is in the process of negotiating a deal with Netease that will offer mobile phone downloads of music from record companies or their agents.
R2G already has signed similar mobile phone download contracts with Chinese Web portal operators Sina Corp. and Sohu.com Inc. and is talking with Tom Group Ltd., Wu said.
So far, Netease is the first of China 's major portals to stop its music search service, Wu said. ``I hope everyone will stop pirated MP3 download services,'' he said. `` China 's laws are becoming complete and the government will start enforcing online piracy laws soon. It's better for the portals to stop such search services as soon as possible.''
To contact the reporter on this story:
Allen T. Cheng in Beijing at Acheng13@bloomberg.net.