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October 12, 2009

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Foreign firms' online game ban

CHINA'S press and copyright authorities have banned foreign investors from operating online games "in any form" in the country.
A circular jointly released by the General Administration of Press and Publication and the National Copyright Administration over the weekend said foreign businesses were banned from investment in China's online game operations through setting up wholly owned enterprises, joint ventures and cooperatives.
Foreign investors were also prohibited from joining and controlling Chinese enterprises' online game operations by such indirect means as contracting relevant agreements or offering technological support.
The rule also tightened control over domestic online game businesses. It said no organizations or individuals could run online game businesses without permits from the GAPP, and online games without approval from the administration would not be allowed to go online.
"The new rule is a good beginning in approving the online games in accordance with laws and will be conducive to the regulation of the online gaming businesses," said Kou Xiaowei, vice director of GAPP's technological and digital department.
The GAPP had carried out a recent crackdown on online games operating illegally and featuring unhealthy content. As of last Thursday, more than 200 online games had been investigated and 45 overseas online games banned.

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