WTO Ruling Upholds U.S. Claims against China on Importation and Distribution of Publications and A/V Products
The WTO released a landmark decision ordering China to ease some of its curbs on imports of American popular culture, noting that Beijing was breaching international trade rules by blocking foreign-owned companies from acting as importers and wholesalers of printed material and certain A/V products. The WTO found that China was requiring foreign companies to distribute their publications and A/V products through state-owned companies in violation of commitments to open the sales and distribution market in China and to treat foreign-owned companies similarly to domestic companies. The WTO Dispute Panel also ruled that China was in violation of its trade obligations because of the prohibition on foreign companies directly offering to Chinese consumers the ability to download music their computers and cell phones. The Dispute Panel ruled in favor of China in finding that (i) China’s criminal law was sufficient to deter piracy, and (ii) the requirement that foreign films be distributed through designated entities was consistent with existing trade rules.
