It was the first time in 74 years the prestigious $1.4 million award was not handed over, because Liu is serving an 11-year sentence in China on subversion charges for urging sweeping changes to Beijing's one-party communist political system.
China was infuriated when the 54-year-old literary critic won, describing the award as an attack on its political and legal system. Authorities have placed Liu's supporters, including his wife, Liu Xia, under house arrest to prevent anyone from picking up his prize.
In China, both CNN and BBC TV channels went black at 8 p.m. local time for nearly an hour, exactly when the Oslo ceremony took place. Security outside Liu's Beijing apartment was heavy and several dozen journalists were herded by police to a cordoned-off area.
In his speech, Norwegian Nobel Committee Chairman Thorbjorn Jagland called for Liu's release, receiving an unusual standing ovation at the international gathering.
"He has not done anything wrong. He must be released," Jagland said. He noted that neither Liu nor his closest relatives were able to attend the ceremony.
"This fact alone shows that the award was necessary and appropriate," Jagland said.
Liu's Nobel diploma and medal were placed on the empty chair marking his absence.
Norwegian actress Liv Ullman read Liu's final statement, "I Have No Enemies," which he delivered in a Chinese court in 2009 before he was jailed.
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