Economy

Screen a movie, and pay for it

By Qiu Bo (China Daily)
Updated: 2010-08-26 10:32

Beijing - Authorities will begin charging Internet cafs, long-distance buses and other distributors for screening Chinese movies starting October, as part of the country's fight against copyright infringement.

The China Film Copyright Association (CFCA), formerly called the China Film Copyright Protection Association, has submitted a proposal to the National Copyright Administration (NCA) listing a standard for collecting copyright royalties.

Shi Wenxia, a spokesperson for the CFCA, told China Daily on Tuesday that the association's members will share 90 percent of the royalties collected and the association will keep the remaining 10 percent as management fees.

"We have 62 members, who own a majority of domestic films," Shi said.

The association, which comes under the NCA and the General Administration of Press and Publication, is a non-profit organization, Shi said.

"The proposed distribution of copyright royalties is not fixed, as we may balance the interests among different sectors to satisfy the members."

Zheng Xiangrong, an official of the NCA, confirmed that the one-week notification period for the latest move to fight piracy was rolled out earlier this month.

At the Haice Internet caf in Beijing's Chaoyang district, the shift manager, surnamed Wang, said on Wednesday that his establishment will not accept any "unreasonable charges".

"Isn't it one of those arbitrary charges?" he asked.

According to the proposed calculation system, Wang's caf, which owns more than 200 computers, will have to pay copyright royalties of about 21,900 yuan ($3,220) every year.

Wang said Internet caf owners have been losing their profit margin anyway and any extra costs will hurt the business.

CFCA director-general Zhu Yongde clarified that Internet cafs must also take into consideration the number of customers and hours of operation.

"It won't cost them that much," Zhu was quoted as saying in the People's Daily on Wednesday. "It will be about 4.68 percent of the caf's turnover, less than 5 percent, as we have calculated."

The association has also proposed that each long-distance bus be charged from 365 to 500 yuan annually for screening movies.

But a source from the Beijing City Long-Distance Bus Company who did not want to be named said implementing the collection system will be a problem.

"If they force us to pay for screening movies, we will stop showing movies or just switch them off during inspection rounds," he said.

But Zhu told State broadcaster CCTV on Tuesday: "There is no such thing as a free lunch."

The association's spokesperson Shi admitted there would be a lot of obstacles in collecting copyright royalties, "but we have faith in regulating the industry and beating piracy".

A popular movie IP Man 2 had been estimated to suffer losses of 10 million yuan in just three days since its pirated version could be watched online for free just a few days after its public screening, according to An Xiaofen, the producer of the film.

Famous TV director Zhao Baogang recently indicated that the industry has been forced to the edge.

"The industry needs regulations or there will be more victims," Beijing Youth Daily quoted him as saying.

Wang Qian, an intellectual property expert and professor at the East China University of Political Science and Law, said the government-authorized move to collect copyright royalties has teeth.

"The association may block websites that offer pirated movies and win compensations through civil lawsuits," Wang said.