Intellectual Property Law

China?s Video Websites Regulation

By Martha L. Arias

China reports the highest world?s Internet population -179.7 million; first to the United States with 163.3 million, and Japan with 60 million. This significant Internet population explains the reason why the European Union and international organizations have pressed on China to adopt and enforce intellectual property laws. Following the success of YouTube, China?s emulated video sharing websites such as Tudou.com, 56.com and Youku.com became exceedingly popular, reporting up to 100 million viewers a day.  This rapid and surprising increase of video sharing websites triggered the enactment of China?s video websites regulation in January 2008. This article provides a summary of the most relevant rules introduced by China?s Video Websites Regulation.

China?s Video Websites Regulation sets forth the rules for the lawful operation of video sites. This makes China one of the first countries to enact laws addressing the legalities of video sharing websites. The Video Websites Regulation has two main characteristics: the requirement of a state license to operate these sites, and the government?s authority to take immediate action against those sites that violate intellectual property laws.

The Video Websites Regulation requires a license and certain qualifications to operate a video website in China. According to articles 7 and 10, an entity must apply to the State Administrative of Radio, Film and Television for an operation license before setting up a video sharing website. This license will be granted for three years and may be renewed.  Articles 7, 8 and 10 establish the qualifications for operators of video websites in China.  The first qualification requires that only state-owned or state-controlled entities can operate a video website; this is congruent with China?s government control of media. Those companies operating before the enactment of this regulation, however, were allowed to continue operations despite being privately-owned companies. Yet, new video sharing operator after 2008 had to comply with the first qualification mentioned above.  

Articles 16 and 17 of the Video Websites Regulation list forbidden content such as pirated videos, and any other video that violates intellectual property laws.  Videos posted in violation of intellectual property laws may be removed immediately. Violations of the Video Websites Regulation are sanctioned with fines, the closure of the website, and criminal prosecution in certain cases.

A government?s commitment to the protection of intellectual property rights, specifically those related to videos and motion pictures is significant. Additionally, elimination of lengthy legal processes to readdress video infringement is the goal of copyright holders. Hence, too much government intervention in video sharing websites does not seem to be the more pragmatic approach for democratic countries.  Is China?s Video Websites Regulation a good example of how to regulate video sharing websites? I wonder what people in other countries think?    

Full post as published by IBLS Internet Law Blog on February 14, 2010 (boomark / email).