Rafat Ali of Paid Content is reporting that the Chinese peer-to-peer (P2P) site, Xunlei, is being sued by the MPA for repeated copyright violation of distributing pirated films. The lawsuit [PDF] names numerous infractions and is seeking 7 million yuan ($1 million USD) in damages. And Google factors in to this story as they invested a reported $5 million into the company last year, which followed $20 million the company had previously raised in funding from Morningside Ventures and IDG VC Partners.
Before the litigation had been filed, the MPA had sent 78 notices of copyright violations to Xunlei.
With China's growing Internet usage, piracy has been a rising problem for the country. In November, the MPA filed a lawsuit against Jeboo.com for film piracy. And the International Federation of Phonographic Industries (IFPI) has already won a lawsuit against Yahoo China for providing links to illegal music sites. There is also a lawsuit pending against Baidu, Google's chief competition for search supremacy in China, for providing access to music piracy sites.