WTO Tells China to Open Up

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WTO Tells China to Open Up

09 November 2012

The World Trade Organisation has ruled in favour of the United States in its claim against China, saying the restrictions China places on the import and distribution of US films, music, books and other copyrighted products are not consistent with its international trade obligations.

The August 12 ruling said that by limiting the import of US copyright-intensive products , including theatrical films, DVDs, music, books and journals, to a few Chinese state-owned companies, and restricting who could distribute those products, China had “nullified or impaired benefits accruing to the United States” under the General Agreement on Trade in Services and the General Agreement on Tariffs and Trade 1994.

Limited distribution makes the US products more expensive and harder to sell to the Chinese public, resulting in higher copyright infringement than might otherwise be the case, the US government said in a statement.

US Trade Representative Ron Kirk called the WTO decision “a significant victory” for America’s creative industries, and an important step toward ensuring there will be a market for US copyrighted products in China.