In this new move, exclusion from the market will be for 10 years from the date of conviction. In addition, China will establish a national audio-video database, effectively a nation-wide "blacklist" of the organizations and individuals involved. This blacklist will be in the public domain.

The blacklist will include those who incur a criminal conviction for illegal activities related to audio-video products together with those who set up wholesale, retail, chain store or rental outlets or trade with related e-business without the proper authorization. Also included will be individuals holding positions of responsibility in the offending organizations and their legal representatives together with any other individuals involved in contravening the relevant laws and regulations.

The Ministry of Culture will establish the national audio-video database listing the proscribed units and individuals at China Audio-Visual and Film Network website (http://av.ccnt.com.cn). Cultural departments within provinces, autonomous regions and municipalities will provide lists of disqualified companies and individuals for the database, which will be published online after scrutiny by the Market Department of the Ministry of Culture.

The new system is based on the Regulations for the Management of Audio-Video Products. These measures require cultural administrative departments at all levels to search the database when processing applications for approval to engage in audio-video product business. Applicants on the blacklist will not be approved.

Insiders have hailed this system as a good use of technology to impose order on the market and crack down on audio-video product piracy and smuggling.

Much of China’s audio-video product market has been downgraded to distribution outlets for pirated discs. This has seriously damaged the market and infringed the rights of both the consumer and the intellectual property holder.

Statistics published by the State Administration for Press and Publishing show that China has 294 audio-video publishers and 9,526 categories of audio-video products. Total turnover in 2001 was some 800 million yuan (US$96.6 million).

(china.org.cn by Guo Xiaohong July 31, 2002)