Yahoo is going to be sued by International Federation of the Phonographic Industry (IFPI) soon.

International Federation of the Phonographic Industry (IFPI) discovered that Yahoo is linking to Web sites that offer pirated music.

With 90% of all the recordings in China are pirated and that annually the music companies lose around $400 million it is clear that IFPI is going to sue Yahoo like crazy. And Yahoo is not alone because Baidu, the largest search engine China is in the same position.

IFPI who is composed by EMI, Universal Music Group, Sony BMG Music Entertainment, Warner Music Group Corp., Go East Entertainment Co., Gold Label Entertainment Ltd. and Cinepoly Records Co. filled a civil suit against Baidu but the settlement offered by Baidu was considered unacceptable by IFPI.

Also, since July 1st, Yahoo is almost sure to receive a fine of $125000 fine because it is a distributor of illegally copied music, movies and other material over the Internet.

“It’s quite strange to see entities quoted on public stock exchanges trading with such blatant infringement that they could get a huge damages award”, “If I was a chief executive, I’d be nervous. If I was a shareholder, I’d be nervous.”

Yahoo it has other problems in China. It is considered as the biggest censor search engine in China and it helped the Chinese government with informations about a couple of dissidents which led them to jail.