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The challenge of copyright enforcement in china's movie industry

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par Katia Beider
The Chinese University of Hong Kong - LL.M in Common Law 2015
  

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Section IV: Unreasonable and costly copyright enforcement

The Copyright Law of PRC hopefully governs classical forms of infringement. For instance, article 47 (8) of the Copyright Law of the PRC provides for civil liabilities in regard to cinematographic work's infringement like the rental of such a work without the permission of right holders. However, obtaining copyright enforcement can be unreasonable and costly.99

93 Kariyawasam Rohan, see above note 46, p.98.

94 Brent Yonehara, see above note 32, p.407.

95 Ibid.

96 IIPA, 2013 Special 301, see above note 27, p.39.

97 Ibid.

98 IIPA, 2010, ITC Investigation No. 332-514, China: Intellectual Property Infringement, Indigenous Innovation Policies, and Frameworks for Measuring the Effects on the U.S. Economy, p.19.

99 Kariyawasam Rohan, see above note 46, p.98.

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Legal action in the area of copyright infringement can involve «good money» for the State because of its business dimension.100 Government agents will not hesitate to charge right holders a lot in order to enforce their rights because right owners suffer a lot of copyrights infringements and will be willing to pay whatever they need to stop it. That is why the burden of proof is so high, especially for foreign right holders. They need to present a lot of certificates in order to enforce their IPRs in China such as copyright registration certificate and certificate of legal representative.101 This is besides the fact that these certificates need to be translated in Chinese by a qualified organization.102 Filling an action for copyright infringement looks therefore really long and costly, a legal inconsistency fostering infringers upon copyright owners.

Section V: The lack of a proper deterrent mechanism

Thresholds for criminal liability are also unreasonably high under China's Law. In order to be liable, the defendant should process to at least 500 copies of the work.103 This restricts a lot the field of copyright infringement prosecution. Also, China's Criminal Law provides for criminal liability for those who committed copyright infringement by meeting some requirements concerning threshold such as gaining «a fairly large amount of illicit income».104 It means that anyone who sells less than 500 copies or who doesn't gain a lot of money by infringing copyrights will not be hold liable. Article 217 of the Criminal Law of the PRC envisages as an alternative to this condition «other serious circumstances» but this is once again too vague to help copyright enforcement and can give rise to contradictory interpretations by judges.

Nevertheless, even where the copyright holder succeeded in his action against the pirate, criminal penalties are often insufficient to discourage future infringers. Fines can be relatively low compared to the money won by selling unauthorized copies of DVDs or by illegally making movies available on websites accessible to the public. For instance, a copyright infringer was sentenced to a fine of 30,000-Yuan while the volume of the illegal sale he participated to was 2.4 million Yuan.105

100 Kariyawasam Rohan, see above note 46, p.98.

101 IIPA, 2013 Special 301, see above note 27, p.41.

102 Ibid.

103 IIPA, 2013 Special report, see above note 27, p.40.

104 Criminal Law of the PRC, Article 217, Article 218.

105 The Second Branch of Shanghai People's Procuratorate v Gu Randi and other persons, 19/04/2005.

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