Xunlei, one of China's largest download service providers, lost a piracy suit on Sunday and paid 150,000 yuan (US$20,833) compensation to a Shanghai company.

Shenzhen-based Xunlei Network Technology Co (Xunlei) was accused of violating the rights of network promulgation and reaping profit, which are legally owned by Shanghai Youdu Broadband Technology Co (Youdu), according to the Pudong District People's Court.

Youdu, a content provider for broadband users, paid 600,000 yuan to get the network promulgation rights for "Confession of Pain", a blockbuster film starring Tony Leung and Takeshi Kaneshiro, from the copyright owner on December 28, 2006, six days after it debuted.

Youdu was allowed to provide download services one month after the film's debut, according to the agreement. Youdu planned to charge two yuan a download. However, a download link for the film appeared on Xunlei's website (www.xunlei.com) in early January, 2007. On January 4, the film was downloaded 520,869 times.

Youdu sued Xunlei on June 21, and asked for 150,000 yuan in compensation.

Xunlei's attorney claimed his client provided only a third-party link for the film and did not violate Youdu's right of network promulgation.

The court said Xunlei objectively participated and helped the third-party website to promulgate the pirated film and promoted the film on its website. Xunlei, therefore, should compensate for Youdu's economic loss.