But the International Federation of the Phonographic Industry (IFPI) said last year that more than 99 percent of all music files distributed in China are pirated, and the country's total legitimate music market, at $76 million, accounts for less than 1 percent of global recorded music sales.

That has made Baidu, the country's largest music search provider, a defendant in many lawsuits launched by label companies in recent years. Record majors argue that rampant online music piracy has significantly impacted their traditional music sales.

But experts also said it may be China's pirated music industry that has made label companies more easily amenable to posting their latest albums on the Internet for free in the country.

"We don't fear that our cooperation with Google will impact our traditional music sales because our business has already been impacted (by online music piracy in China)," said Caroline Chow, vice-president of EMI Music in Southeast Asia.

Google's market share in China rose to 27.8 percent last year from 23.4 percent in 2007, domestic research firm Analysys International said. Baidu's share also increased, from 59.3 percent to 62.2 percent, the research firm said.




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Editor:Yang Jie