From Interfax:

A Beijing court has agreed to hear a lawsuit filed by 3721, a Yahoo! subsidiary, against Chinese search engine Baidu on charges of unfair competition, a court official told Interfax Wednesday.

“We have just accepted the case and will be announcing a time for the court hearings later,” an official with the Beijing Haidian District People’s Court, who wished to remain anonymous, told Interfax on Wednesday.

In its lawsuit, 3721 accuses Baidu’s “IE Search Companion” and “Baidu SoBar” applications, which are downloaded onto users’ computers, of preventing netizens from using a similar product offered by 3721 named “Internet Assistant,” the Beijing court said in a report posted at www.chinacourt.org.