In a development that speaks to both recent developments that seek to drive more value for the content industries in China, as well the vitality of the Shanghai Free Trade Zone as an experimental pilot, the Ministry of Culture has lifted the ban of video game consoles in China.
The ban had previously been lifted in the Shanghai Free Trade Zone in early 2014. The Ministry of Culture on Tuesday lifted the ban on video games and consoles effective retroactively as of June 30, 2015.
In its announcement, (文化部关于允许内外资企业从事游戏游艺设备生产和销售的通知) (Notice of Ministry of Culture Permitting Domestic and Foreign Enterprises Participating in Video Game Entertainment Equipment Production and Sales) as well as the related notice accompanying the announcement (游戏游艺设备内容审核管理办法)(dated June 24, 2015) (Rule for Managing Approval of Content for Video Game Entertainment Equipment), the Ministry noted that it will encourage “healthy” video games, with national characteristics, including “use of indigenous intellectual property.” (具有自主知识产权). Self-censorship and reporting mechanisms are to be established by game developers and manufacturers.
Requests to lift the video game console ban had long been a staple of requests made to USTR by console manufacturers and game developers, as well as the International Intellectual Property Alliance.
How much will the removal of the ban stimulate the legitimate industry? This appears to be one of several efforts to bring more value and protection to copyrighted content in China. Among those recent developments are the market opening efforts announced in the recent Strategic and Economic Dialogue on marketing of flat-fee (non-revenue sharing) films in China, the availability of copyright protection for sports broadcasts, the grant of a preliminary injunction involving a US video game product, and recent licensing deals for music and sports broadcasts.