The big commercial sites are not the problem. Most have already signed agreements under which they pay a portion of their music download fees to copyright holders.

At issue are the untold number of small personal Websites that provide music for free and link audiophiles to other similar services.

Today's situation in China takes its precedent from the United States.

Last year, the American Website Mp3.com was ordered to pay Universal Music US$53.4 million in compensation for putting the company's music online. And Napster Inc., a system that linked music lovers who were willing to share their personal collections with others online, was forced to halt operations at the beginning of this year. It is now running again after signing contracts with record companies.

This country's protector of audio in-tellectual properties, the Music Copyright Society of China, wants to control the use of licensed products here before things get too far out of hand.

"We have delivered lawyer's letters to more than 100 domestic music download Websites," said Qu Jingming, the society's vice director-general. "Those that don't respond to our request or can't satisfy us will face a court suit soon."

Qu said his organization has hired some 20 people to keep track of the thousands of pieces of music that are under its protection.

China has only about a dozen major commercial online music companies, plus countless small commercial and personal Websites.

"We have collected enough evidence against more than 30 Websites," Qu said. "We will take legal action in the next two months."

Most of the large commercial companies have already signed contracts with the copyright society that allow them to continue using the music by paying a fee.

Leading domestic Websites such as Sina.com Inc. and Sohu.com Inc. reached agreements for mobile phone music downloads at the beginning of the year. So did wireless content provider Newpalm Information Technology Co. and the Website wanwa.com.

"We made a contract with the MCSC that began last March," said Feng Chujun, general manager of wanwa. "Now we are working on the details of renewing the contract."

Feng's Website charges users 2 yuan (US$0.24) per song for downloads and pays 10 percent of the income to the copyright group, to be forwarded to the record company. Wanwa.com also bought the right to use 500 songs for test purposes. The Website said it paid about 15,000 yuan (US$1,811) in such fees over the past year.

Some personal Website owners, however, say they just want to share their favorite music with friends, and argue those activities should not be subject to charges.

"Barbar," who runs a free Website offering Japanese and Korean music and claims to be a law student, said personal Websites should be considered private space and be distinguished from the commercial ones.

"China's intellectual property law does not consider the use of patented products for non-business purposes in private space to be a pirate activity," he said.

"The copyright law specifies 12 situations, including the use of published works for personal study, research or entertainment, in which payment is not required," he said.

The authorities admit the law needs to be clarified on this issue, and steps are now under way to make sure copyright protection has entered the Internet age.

"Information on the Internet can be seen by anyone online, so the so-called 'private usage' of patented products is actually far from private," said Shi Min, director-general of the State Council's Legislative Affairs Office.

"Since this situation is not included in the current law, we have met with a lot of problems," Shi said.

China's copyright law, passed in 1990, is now being revised. A draft of a new version has been delivered to the National People's Congress and is awaiting approval.

Shi said that the new law will include detailed regulations covering online music.

(Eastday.com 06/26/2001)