2011: A Breakthrough Year in Copyright Protection 2011年：中国版权保护取得突破的一年

By newsdoug on December 22, 2011

2012: Year of Big Strides in Copyright Protection It seems quite appropriate that 2011 is ending with news that Internet search leader Baidu (Nasdaq: BIDU), which for years symbolized rampant disregard for copyrights on China’s unruly Internet, has been removed from a US list of “notorious markets” for piracy, capping a year that saw great progress in intellectual property protection. (English article) Baidu’s achievement after it signed a series of landmark licensing agreements with major music labels like Universal, Warner (NYSE: WMG) and Sony Music (Tokyo: 6758) in July as it launched a service selling legal copies of their music. (previous post) Baidu’s removal from the list was just the latest major advance in copyright protection, as China’s crowded field of online music and video sites all took new steps to secure exclusive content to set themselves apart from rivals in the competitive sector. The nation’s top 3 video sharing sites, Youku (NYSE: YOKU), Sohu video (Nasdaq: SOHU) and Tudou (NYSE: TUDO) all signed their first big licensing deals during the year to offer TV shows and films from the likes of Warner Brothers (NYSE: TWX) and Disney (NYSE: DIS). (previous post) Some domestic names like Huayi Brothers (Shenzhen: 300027) signed similar deals, as early signs emerged of a coming renaissance for domestic content makers, an increasing number of which are looking to domestic IPOs to fuel their growth. (previous post) In another interesting development just last week, Youku and Tudou filed a series of copyright infringement lawsuits against each other, showing that these companies themselves could emerge as a potent force to help police against future copyright violations. (previous post) Last but not least, many of the sites themselves are increasingly producing their own exclusive content, with Phoenix New Media (NYSE: FENG) and PPLive announcing such initiatives during the year, which should also help the programming industry’s development. (previous post) Of course, there is still much work to be done. Despite its launch of a legal music service, Baidu continues to operate its popular older music service where swapping of pirated songs is rampant. And while Baidu was removed from the “notorious” list, Alibaba’s Taobao, China’s e-commerce leader, remains on the list for the widespread sale of knock-off products on its site. Still, in all my years covering China tech and media, 2011 certainly looks like a year of major breakthroughs in copyright protection as Chinese firms finally wake up to the reality that piracy isn’t a very good long-term business model.

Bottom line: Baidu’s removal from a US piracy list reflects big progress in the anti-piracy battle in China in 2011, with the campaign likely to maintain momentum into 2012.

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