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China Tech News was quoting local media, saying a lawyer from Shanda Literature's law office partner announced this decision during the "Internet Literature Copyright Seminar" held in Beijing. Led by Beijing Municipal Bureau of Copyright, the seminar was held by China Written Works Copyright Society and Shanda Literature; and was co-organized by Beijing International Copyright Trade Center, Music Copyright Society of China, and Booksellers and Publishers Chamber of All-China Federation of Industry & Commerce.

Shanda Literature listed seven reasons for its lawsuit against Baidu.com: Baidu.com infringed the copyright incomes of contracted writers of Shanda Literature; Baidu.com was responsible for content and url thefts of its key literature works; Baidu.com manipulated the ranking list and blocked Shanda Literature's works for no reason; Baidu.com's Post Bar has become a hotbed for pirated Internet literature; Baidu.com's response to requirements of pirated content deletion is slow; Baidu.com's tolerance for pirated websites has harmed the development order of the innovation industry; and Baidu.com caused great losses to Shanda Literature.

Shanda Literature said it prepares to sue Baidu.com in January 2010 for five pieces of severely infringed works. The lawsuit will involve a compensation of over CNY1 million.

Well either this is a great slip-up in proving information for Baidu too prepare their defense or this is a "do you want to deal or not" plea. Guessing the later but lets see how Baidu responds...