Editor

Independent Film & Television Alliance Comments on Report

The Independent Film and Television Alliance applauds the tenacious efforts of the United States Trade Representative Office in bringing about a successful result for the motion picture, sound recording and book publishing industries in the market access case against the People’s Republic of China as outlined in the Panel Report issued today by the World Trade Organization Secretariat.

“The Report issued today is important progress in the effort by independent film and television producers and distributors to gain better access to the Chinese marketplace.” said Jean M. Prewitt, President & CEO of IFTA. “The Panel’s findings and the anticipated changes to Chinese law and practices will create new distribution opportunities for independent films and television programming. We also firmly believe that China will benefit from increased investment in its distribution infrastructure and enjoy a wider range of entertainment programming resulting from a more competitive and open marketplace.”

The U.S. government successfully argued that Chinese laws and regulations which reserved the right to import films for theatrical release and audiovisual home entertainment products to wholly or partially state-owned enterprises violated WTO trading rights obligations. As a result of this Report, the PRC must revise its laws to permit certain goods such as DVDs to be imported into China by foreign enterprises on the same basis as Chinese companies. While the Panel did not find that China's laws create a mandatory distribution duopoly for films, the Report acknowledges China’s confirmation that non-state controlled Chinese entities may also apply for a permit to import and distribute non-Chinese theatrical films. This suggests that additional Chinese companies may soon apply and be approved to import and distribute non-Chinese theatrical films on the terms and conditions that are commensurate with the worldwide marketplace.

Earlier this year, another WTO panel completed its work in a separate case brought by the U.S. against China which involved intellectual property rights, and included a ruling that China must revise its copyright law to extend protection to pre-censored audio-visual works in order to comply with TRIPS.