China has created a favorable environment for copyright-based
industries in government procurement and taxation and will do more
to encourage innovation.
Yan Xiaohong, vice-director of the National Copyright
Administration, made the remarks yesterday on the sidelines of the
International Copyright Forum, jointly hosted by the administration
and the World Intellectual Property Organization (WIPO).
"We have already asked all governmental departments to use
authorized operating systems and software. We will also encourage
them to use more home-made software," he said.
Home-made software include those developed by foreign software
firms that have registered copyright, paid taxes, and achieved 50
percent of added value in China.
Although major foreign software companies have yet to meet the
criteria, the Chinese authorities encourage them to invest more in
research and development in the country.
In terms of taxation, starting this year major domestic software
enterprises with an annual income of more than 100 million yuan
(US$12 million) or annual exports worth more than US$1 million,
have to pay only 10 percent corporate income tax, instead of the
standard 33 percent.
"A favorable taxation policy will encourage more investment in
the software industry and will help companies lower costs," said
Geoffrey Yu, deputy director-general of WIPO.
During the forum yesterday, a Chinese Enterprise Copyright
Alliance was established as proposed by major Chinese IT firms
including Shanda Interactive Entertainment Limited, Netease Group,
Microsoft China and Sina Group.
(China Daily September 6, 2006)