●   The WTO Adjudicated that the PRC Violated Global Business Rules

 

The WTO adjudicated that restrictions placed on the sale of American books and magazines, films and music in China violated global business rules.

 

One analyst believes that if the PRC can improve patent protection for medicines and automobile parts and that if it can improve copyright protection for films and software, the value of such protection improvements to American enterprises will exceed the value that any reform of the exchange-rate policy of the PRC can provide.

 

●   American Voice: The United States Views the Decision as a Significant Victory

 

The Obama Administration and Hollywood applauded the WTO’s decision on August 12. They said the adjudication would aid in cracking down on intellectual property infringements and help American magazines and popular films to enter into the Chinese market.

 

American officials believe that the PRC should not limit the power of distributing foreign films to its two state enterprises dedicated to the film industry.

 

The adjudication did not veto China Film Group Corporation’s right to an import quota of 20 films introduced from abroad every year. However, the adjudication ruled that the China Film Group Corporation cannot hold a monopoly on importing foreign films, which will allow foreign films to enter Chinese market through other means.

 

●   Chinese Voice: The PRC Is Considering Appealing the WTO’s Decision

 

On August 13, the PRC was dissatisfied with the adjudication made by the WTO concerning restrictive measures on the imports of American books and films and may decide to appeal the decision.

 

An official involved with the film industry in China stated that the company appointed by the PRC was in charge of importing foreign films according to the guidelines for the management of Chinese films. Currently the China Film Group Corporation’s mandate is to introduce foreign films in accordance with Chinese regulations. In the official’s view, it would be best if the Chinese film industry at its current early-stage of development could be given more support and greater space to grow more rapidly.

 

Yaojian, the press spokesman of the Ministry of Commerce of the People’s Republic of China, stated that after joining the WTO, the PRC fulfilled and took seriously the relevant obligations on market access for all forms of publication. The channel is open for foreign publications, films, and audio-visual products entering the Chinese market.

 

●   The Adjudication Has Had A Deep Impact

 

The case has likely had a worldwide influence for it has established a precedent for how the PRC will manage and control foreign manufacturers and service providers.

 

The adjudication is regarded as an important step forward, but American content providers believe they will need to take new measures to crack down on piracy in order to ensure that the adjudication has a substantive influence.

 

The Chinese government is sensitive to the outcome of this case because the Chinese government asserts its right to object if the contents of the products including video games and computer software are inappropriate.

 

(Source: Reference News)