Online video sites see IPR as vital
Print Edition
AS China beefs up intellectual property rights protection, the country’s online video industry is bidding farewell to the era of rampant piracy.
Shenzhen QVOD Technology Co became the latest major online video service provider to face an IPR infringement crackdown.
Police in Shenzhen, which borders Hong Kong, busted QVOD Technology’s headquarters last week following allegations that the company was distributing pornographic content.
Earlier this month, QVOD Technology shut its QVOD (quasi video on demand) servers after the National Copyright Administration said the company, along with Baidu’s video service, violated copyrights.
QVOD Technology also defended over 80 copyright infringement cases in the first four months of this year.
The company, founded in 2007, said that it would invest no less than 100 million yuan (US$16 million) on copyright purchases in the coming year.
It used to offer pirated and pornographic videos with peer-to-peer video streaming technology. Its user base quickly grew to 300 million.
Other industry players, including Youku, Sohu Video and Tencent Video, also relied on pirated and pornographic content in their initial growth stages.
They have now banned such content and bought copyrights to follow global norms. They allow advertising and paid video-on-demand services to cover costs and generate earnings.
In November, the three major players established an alliance to fight against copyright infringement by QVOD Technology and Baidu’s video service, demanding 300 million yuan in compensation.
Copyright protection is vital for the healthy development of the online video industry, said users on Sina Weibo, China’s Twitter-like microblogging service.
Wang Xin, chief executive officer of QVOD Technology, said only by abiding the rules can the company survive.
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