China's new film royalty rule stirs debate

BEIJING - China's new regulation on charging copyright fees for playing movies in Internet cafes and on long-distance buses has stirred debate among the Chinese public.

The National Copyright Administration issued the regulation Thursday "in a bid to improve films' copyright protection," said Zhu Yongde, president of the China Film Copyright Association (CFCA).

Officials said the CFCA would begin collecting copyright royalties on January 1, 2011.

An Internet cafe owner, surnamed Cheng, in southwestern Chongqing municipality, said the charges were "unacceptable," and she would consider "a markup in price" for her customers. However, Internet cafe users said they do not want to be the final point for paying film royalties.

For its part, the CFCA said royalties are only charged for playing movies in "film libraries" of Internet cafes, which have been created by cafe owners. However, the rules imposed a uniform pricing format for all Internet cafes, with or without a film library.

Further, a Beijing cafe owner said it was unfair to charge fees, as most customers watch movies through free video-sharing websites.

Also, a Beijing tourist bus driver, surnamed Liu, said "there is not even a movie playing system on my bus, but I still have to pay the royalties, according to the rules."

Despite all the complaints, Zhu of the CFCA said revenues from royalties would reach about 20 million yuan ($2.94 million) in 2011 and 100 million yuan in 2013, 90 percent of which would be distributed to the association members, and another 10 percent will be retained as management fees, which he called "not a high proportion" compared with 15 to 35 percent abroad."

The 62-member CFCA is composed of film companies such as China Film Group Corporation, H. Brothers Movies and New Pictures Corporation.

Zhang Zhao, director of Enlight Pictures Corporation, a CFCA member, said, "Big profits from the royalties are not expected, but I only hope the move will help promote social awareness of films' copyright protection."

Prof. Wang Qian of East China University of Political Science and Law said Internet cafes and long-distance buses should pay for screening movies, and the CFCA had the right to collect royalties for its members.

But Prof. Wang Haizhen of Shanghai International Studies University said royalties' amounts should be negotiated, instead of being decided by the CFCA alone.

Finally, Zhu of the CFCA said royalties for playing movies on television channels should also be considered at a later date.