Rich Fiscus
20 Jul 2007 22:10
According to a US trade official, the United States is seeking consultations with China over that country's policies on music downloading and cinema rights.
In a written statement to the WTO (World Trade Organization) regarding an ongoing complaint, the U.S. said "various measures in China appear to impose market access restriction or discriminatory requirements on foreign service suppliers seeking to engage in the digital distribution of sound recordings."
According to Stephen Norton from the Office of the US Trade Representative, Music from foreign sources needs to undergo content review before being distributed in China. Chinese music doesn't have to face that process," Norton told The Associated Press. "The review delays Chinese Internet providers and Chinese consumers from accessing foreign music." He also mentioned that the same discrimination barriers exist for downloading music to mobile phones.
Since Chinese law doesn't allow foreign companies to own or invest in Chinese companies that distribute music over the internet, this is a major barrier for foreign businesses.
As a country that now boasts over 160 million internet users, China is an important market to reach. With only 12.3% of the population using the internet right now, compared to the global rate of 17.6%, it should continue to grow for some time.
Sources: Fox News, Reuters