And the implementation of the new regulations on audio-visual products will ensure a growing market for original products.

The latest survey conducted by the Ministry of Culture shows that Shanghai and Beijing municipalities and Guangdong Province topped in the list for the sale of genuine audio-visual products last year.

Many audio-visual product producers said sales of their products they released in 2001 were up 20 percent over figures for 2000.

"This has much to do with the measures and efforts that the ministry has made to eliminate illegal audio-visual products," said Zhang Xinjian, vice-director of the Cultural Market Administration of the ministry.

In 1999, the ministry ordered the shut-down in three year's time of all large-scale markets where illegal publications were sold.

By the end of 2001, 277 such markets had been closed, leaving many pirated products no place in the market.

At least 8,600 sellers of pirated goods had their licenses revoked and their businesses were shut down, according to official statistics.

The once rampant networks for the sale of pirated audio-visual products were destroyed and consumers' access to pirated products has been blocked, said Zhang.

The police and administrative departments have also strengthened their investigations into the production of illegal products and have seized vast quantities of illegally-copied and pornographic publications.

On December 2 last year, in a campaign organized by the ministry that covered more than 200 cities, 18.29 million pirated items were destroyed, bringing the year's total number of destroyed copies to 90.05 million.

At the same time, the ministry has been promoting new approaches to selling genuine audio-visual products to expand their shares of the market.

In April, it brought together retailers and encouraged them to learn from Shanghai's experience in establishing retail networks by building chain stores and supermarkets.

In May, the ministry held a forum discussing how to develop and manage online sales of audio-visual products in Beijing.

Also, with the implementation on February 1 of the new regulations on the administration of audio-visual products, sales of genuine products in the market will continue to grow, he predicted.

The regulations strengthen the punishments imposed on the sale of illegal audio-visual products at all levels, wholesale, retail and leasing.

Violators will be fined from five to 10 times the sales value of the illegal goods, or the amount of goods multiplied by the price the goods would be sold to customers for, when their value is more than 10,000 yuan (US$1,200).

Unlike the old regulations, the new fining method does not need to count the profits of illegal businesses - numbers excluding costs that are hard to calculate and on many occasions not big enough to teach illegal sellers a lesson, the official explained.

The regulations also state that companies and individuals found to be involved in the illegal business will be recorded on a "black list." Their licenses will be revoked, and they will not be allowed to be involved in the audio-visual product business for the next 10 years.

"The new rules will be more effective," said Song Ke, deputy general manager of Warner Music China (BJ) Ltd Co.

Like many other producers, Warner is encouraged by the new regulations, especially by the rules on fines, because "they mean increased sales and more profits."

(China Daily January 24, 2002)