20151008｜Noticeon crackdown upon illegal acts such as bootlegging films in theater was released by Film Board of SARFT
20151029｜GLO strengthens its relationship with New Media Business Uint of Shanghai Media Group
20151030｜Draft Film Promotion Law has been submitted to the Standing Committee of NPC for approval
20151104｜Strategic Cooperation Agreement has been signed between China Film Co., LTD and Oriental Dream Works
20151109｜Notice on further strengthening and improving online music content management by Ministry of Culture of the People’s Republic of China
20151111｜ZEROVAT policy applicable to film and television export service since December
20151119｜Memorandumon Permanent Theaters Releasing Chinese Films has been signed by China Film Archive and Korea China Culture Center
20151203｜Notice on Supporting Plan on A Hundred Chinese Dream Animations by SARFT
Noticeon crackdown upon illegal acts such as bootlegging films in theater wasreleased by Film Board of SARFT
On September 29, 2015, the Film Board of the State Administration of Press, Publication, Radio, Film and Television of the People’s Republic of China (「SARFT」) has promulgated the Notice on the crackdown upon illegal acts such as bootlegging films in theatre, with the intention to further standardize the market order and crack down on violations in film markets. The Notice restates important issues such as 「strengthen and improve film detection technique, and apply digital film watermarking technology to track cinemas suspected for bootlegging」, 「people who constitute piracy or illegally spread piracy program shall be investigated for legal responsibility according to laws」, and 「strengthen copyright protection consciousness of movie circuit companies」, for the purpose of creating good atmosphere for the healthy and sustainable growth and development of movie industry.
GLOstrengthens its relationship with New Media Business Unit of Shanghai Media Group
Recently, GLO has strengthened its cooperation with Shanghai Media Group. Our GLO Shanghai office has been involved in many important legal projects, and has provided legal services with respect to the preparation, establishment, operation, and content management of the newly established New Media Business Unit under Shanghai Media Group.
Jeffery Zhu, our Shanghai office partner said, 「We are delighted to have again assisted our long-standing client Shanghai Media Group in achieving an outstanding expansion on this new business sector. The Chinese online entertainment market continues to be attractive for investors and, given the significant volumes implicated in many transactions, we expect our clients to continue to look to this market to achieve significant growth.」
DraftFilm Promotion Law has been submitted to the Standing Committee of NPC forapproval
On October 30, 2015 for the first time, the Draft Film Promotion Law (the Draft) was discussed at the 17th session of the 12th NPC Standing Committee. According to the Draft, China will promote the movie industrialization level by streamlining administration and delegating power to the lower administrative levels and by increasing the government support intensity.
a. Promote to streamline administration and delegate power to the lower levels
To accelerate transforming the government functions, the Draft abolishes two items of administrative examination and approval and delegating five items power to the lower administrative levels, and the main contents are as follows: (i) simplifying the film censorship, and changing the general movie theme review to the film script outline filing only; (ii) reducing the entry threshold on movie production activities and delegating the power of examination and approvals of film-productions, special theme movie scripts, public exhibitions, film screening and international film festivals to the lower administrative levels.
b. Standardize the industry development and the film market order
First, the Film administrative department shall strengthen the activities of the daily supervision and management, build the system of social credit files and publish it to the society. Second, the film industry organization shall establish self-discipline rules in accordance with law, conduct business communication and professional skill certification, strengthen professional ethics education and safeguard the members』 legitimate rights. Third, those entities engaging in film production, distribution and screening activities shall be compatible with the matching staff, capital and other conditions. Fourth, the authorities shall protect the intellectual property related to the movies and investigate and punish the intellectual property violations. Fifth, the Draft requires the cinemas to install computer ticketing system in accordance with national standard and conduct accounting and sales revenue statistics faithfully. Sixth, the Draft requires that the quality of film screen, the screening facilities and equipment shall conform to the state film screening technology standards when engaging in cinema screening and mobile screening. Seventh, it shall be approved by the relevant film department for holding film festival in domestic areas.
c. Increase support intensity and promote the development of movie industry
In order to increase the initiative of film creation, production, distribution and projection, the Draft stipulates that: (i) Government at all levels should incorporate movie industry development into national economic and social development plan, and form a unified and open market with fair competition through making relevant industry guiding policies; (ii) Government at all levels should guide dedicated capital and fund from related cultural industries to increase investment on movie industry, offer tax concessions, encourage supports from financial institutions, effectively secure land requirements, and increase overseas promotion strength to facilitate the all-round development of movie industry; (iii) Government shall be requested to provide facilitations and assistants and coordinate departments concerned, for film crew to go deep into grass-root areas, merge with the local people and experience real lives; (iv) Government shall encouraging social forces』 participation into developing movie industry in terms of investment and donation, and offering benefits in accordance with laws; (v) Support rural areas, border areas, poverty-stricken areas and minority areas in terms of movie development, and strengthen translating and dubbing of languages and scripts for ethnic groups.
d. Safeguard Chinese cultural security and promote socialism core values
(i) Clarify positive guiding function of movies and set out movies』 doctrines of serving the people and society, while prohibit content violating the Constitution, endangering national security and imperilling social morality; (ii) Prohibit foreign enterprises or other organizations from undertaking independent movie production within the borders of People’s Republic of China; prohibit foreign individuals from undertaking independent movie production within the borders of People’s Republic of China; prohibit foreign enterprises or other organizations which have ever harm the honour and interest of the nation, the stability of society, and national sentiments from undertaking movie co-production within the borders of People’s Republic of China; (iii) Stipulate that movies uncensored shall not be issued, released, broadcasted though network communications including Internet, telecommunications networks or NGB etc., made into audio-visual products or attend film festivals (or exhibitions).
In addition, the Draft stipulates corresponding legal liabilities towards acts in violation of the law.
StrategicCooperation Agreement has been signed between China Film Co., LTD and OrientalDreamWorks
On November 3, Strategic Cooperation Agreement has been signed between China Film Co., LTD and Oriental DreamWorks, two parties thereto will cooperate in developing movie derivative products with Chinese characteristics. The two parties will combine integrated advantageous resources, profoundly explore cultural connotations and creative techniques of original animation films, and develop movie derivative products with Chinese characteristics, with the blueprint to create a 「Dream Factory」 of Chinese movie derivative products.
Noticeon further strengthening and improving online music content management byMinistry of Culture of the People’s Republic of China
On November 9, 2015, Ministry of Culture of the People’s Republic of China promulgated the notice on its official website, the main contents are as following:
The Notice indicates that online music operators shall follow the principal of 「who operates shall take the responsibility」, insists unification of social and economic benefits and the priority to social benefits, and earnestly implement entity responsibilities for content censorship. In addition, the Notice indicates that the operators shall establish online music autonomic censorship workflows and liability system; the operators shall conduct such censorship in strictly accordance with content censorship standards and regulations formulated by cultural administrative departments, online music products shall not be put into market until censored and approved. Autonomic censorship system and self-censorship information shall be registered to cultural administrative departments above provincial level for record.
The Notice also emphases that cultural administrative departments at all levels together with comprehensive law enforcement agencies of cultural market shall conduct and supervise online music operators upon self-censorship, including instructing trainings on censors from enterprises, establishing online music market patrol system and random inspection system. Meanwhile, such cultural administrative departments shall investigate acts violated laws and regulations and punish violators; and establish and improve online music market credit management system, including warning-list and blacklist; and implement credit management system in online music market.
This Notice will take effect from January 1, 2016, and online music operators shall submit relevant online music autonomic censorship information from April 1, 2016.
ZEROVAT policy applicable to film and television export service since December
Recently, Notice of Taxation on Applying Zero-rated VAT to Film and Television as well as Other Export Services was released by the Ministry of Finance and the State Administration of Taxation. The Notice indicates that from December 1, 2015, Zero-rated VAT is applicable to production and distribution service of radio, film and television program provided by domestic entities and individuals to foreign entities.
Memorandumon Permanent Theaters Releasing Chinese Films has been signed by China FilmArchive and Korea China Culture Center
On November 19, Memorandum on Permanent theatres Releasing Chinese Films has been signed by China Film Archive and Korea China Culture Center. This memorandum provided that China Film Archive shall be responsible for providing Korea China Culture Center with Chinese films of different periods and different topics and the Korea China Culture Centershall promote these films to Korea audiences in certain specific theatres.
Noticeon Supporting Plan on A Hundred Chinese Dream Animations by SARFT
The SARFT will carry out a plan named 「Supporting Plan on A Hundred Chinese Dream Animations」. The plan will focus on Chinese stories, carrying forward the Chinese spirit, concentrating the Chinese Power, promoting the broadcast and propaganda of relevant works, and positively expanding communication effect and social influence, as well as developing a healthy environment for the juveniles.