China Bans Foreign Media Downloads

By STEVEN SCHWANKERT

(Virtual China News -- Mar. 27) China announced its third major Internet-related ban Saturday, prohibiting the online sale of MP3s and imported audio and video products, and barring foreign-invested companies from selling all audio-visual materials, wire services reported.

The new restrictions come less than one month after Chinese officials relented on what had been a wide-ranging ban on the use of foreign encryption and security products.

The Xinhua News Agency reported that the new regulations are meant to block the distribution "of pirated, smuggled or 'otherwise illegal' music and video products," reports said.

Companies selling these audio-visual products online will be required to obtain licenses by May 1, the reports said.

Rampant piracy has brought the entertainment industry in China to its knees. Except for occasional seizures of pirated CDs and video CDs done to appease foreign intellectual property rights (IPR) activists, piracy in China is largely unchecked. Unauthorized music sells for 25 percent or less than its authentic retail price, and foreign box office hits are available on video CD within days of their US release.

To reach Steven Schwankert: steven@virtualchina.com