People's Republic of China Film Industry Promotion Law (Draft) (Second reading draft)

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CONTENTS

Chapter I: General Provisions

Chapter II: Film Creation and Production

Chapter III: Film Distribution and Screenings

Chapter IV: Support and Safeguards for the Film Industry

Chapter V: Legal Responsibility

Chapter VI: Supplementary Provisions

People's Republic of China Film Industry Promotion Law (Draft)(Second Deliberation Draft)

 

Chapter I: General Provisions

Article 1: This law is drafted so as to promote the film industry's prosperous development, to regulate order in the film market, to carry forward to core socialist values, and to enrich the public's emotional and cultural lives.

Article 2: This law applies to the engagement in film creation, production, distribution, screening and other such activities (hereinafter referred to as film activities) within the People's Republic of China.

''Films" as used in this Law, refers to works produced utilizing audio-visual technologies and artistic methods, recorded on film or digital media, composed of sequential images with or without sound that present a definite content, complying with nationally provided technology standards, and publicly screened at movie theaters and other fixed venues or with mobile screening equipment.

Where films are transmitted on information networks such as the Internet, telecommunications networks, radio and television networks; laws and administrative regulations for information network management on the Internet, telecommunications networks, or radio and television networks shall also be obeyed.

Article 3: Engagement in film activities shall persist in service to the people and service to socialism, persist in placing the social benefit first, and bring about social benefit consistent with economic benefits.

Article 4: The State upholds a people-centered orientation, persists in the directive of letting a hundred flowers blossom and a hundred schools of thought contend, calls on film production to stick close to real conditions, to life, and to the people; and encourages exceptional films that are beneficial to the people and integrate thoughtfulness, art and splendor.

The freedom of film creation shall be respected. The State safeguards the freedom of film creation.

Article 5: The State Council shall place development of the film industry within the citizens' economic and development plans. Local people's governments at the county level or above place development of the film industry within the citizens' economic and social development plans for that level on the basis of the actual local conditions.

The State formulates policies for film and its related industries, leading to the formation of a film market that is uniformly open with fair competition; promoting prosperous development of the film market.

People's governments of provinces, autonomous regions and directly-governed municipalities shall formulate policies for film and its related industries on the basis of the local film industry's actual development situation.

Article 6: The state encourages research, development , and application of film technologies, formulation and improvement of standards for film technology, and establishing a new system of innovation in film technology that is enterprise-centered, market-oriented, and integrates production, teaching and research.

Article 7: Intellectual property rights related to films receive legal protections, and must not be violated by any unit or individual.

The departments in charge of enforcing intellectual property rights laws of the people's governments at or above the county level shall take measures to protect intellectual property rights related to films and to punish actions violating film-related intellectual property rights.

Citizens, legal persons, and other organizations engaged in film activities shall increase awareness of intellectual property rights protections, increase the capacity to use, protection and manage intellectual property rights, to protect intellectual property rights in accordance with law.

The State encourages citizens, legal persons, and other organizations to lawfully develop film image products and other derivative products.

Article 8: The competent department for film under the State Council is responsible for the entire nation's efforts on film; the competent departments for film of people's governments at the county level and above are responsible for that administrative districts efforts on film .

Other relevant departments of people's governments at the county level or above are responsible for work on films within the scope of their duties.

Article 9: Film industry organizations formulate industry self-discipline regulations, carry out business communication, to strengthen education on professional ethics and preserve the lawful rights and interests of members.

Actors, directors and other persons in film shall follow the requirements of both virtue and art, comply with laws and regulations, respect social morality, abide by professional ethics, strengthen self-discipline, and establish a positive social image.

Article 10: The State establishes a film evaluation system, and encourages film reviews.

In accordance with relevant provisions, the State awards prizes to excellent films and organizations or individuals making outstanding contributions to promoting the development of the film industry

Article 11: The State encourages the initiation of fair and mutually advantageous international cooperation and exchange in film, and supports participation in foreign film festivals (exhibitions).

Chapter II: Film Creation and Production

Article 12: The State encourages innovation such as in the production, themes, genres, forms, and methods of film scripts, and encourages communication between academia and business on film.

Competent departments for film of people's governments at the county level or above, on the basis of the need for film creation, facilitate and provide assistance needed by film creators in going among the basic levels, going among the masses, and experiencing life.

Article 13: Legal persons and other organizations that intend to produce films shall send a screenplay synopsis to the competent departments for film under the State Council or to the competent departments for film of provincial, autonomous region, or directly-governed municipality people's governments to be filed for the records; and of these, those that involve major themes or involve subject matters such as national security, foreign relations, ethnicities, religion, military affairs; shall review the screenplay in accordance with relevant national provisions.

Where the screenplay synopsis or screenplay complies with the provisions of article 16, the competent departments for film under the State Council are to announce the circumstances of the planned production and approval or supporting documents are to be issued by the competent departments for film under the State Council or of provincial, autonomous region, or directly governed municipality people's governments. Specific measures shall be formulated by the competent departments for film under the State Council.

Article 14: Legal persons, and other organizations may cooperatively produce films with foreign organizations upon approval of the competent departments for film under the State Council foreign films; but must not engage in that cooperation with foreign activities that are harmful to the nations' dignity, honour or interests, that are harmful to social stability, or hurt the feelings of the ethnicity, and so forth.

Mainland Chinese legal persons or other organizations cooperating with foreign organizations to produce films, enjoy copyrights in the cooperatively produced film, and the film is equivalent to a film produced by a domestic mainland Chinese legal person or other organization.

Foreign organizations must not independently engage in film production activities within mainland China; and foreign individuals must not engage in film production activities in mainland China.

Article 15: Competent departments for film of people's governments at the county level or above shall coordinate with departments such as for public security, cultural artifact preservation, and scenic area administration to provide necessary facilitation and assistance to legal persons and other organizations engaging in film production activities.

Those engaging in film production activities shall obey the relevant laws and regulations in areas such as environmental protections, scenic region administration, and production safety, and shall employ necessary protective and preventative measures and production sites.

Article 16: Films must not contain the following content:

(1) violations of the basic principles of the Constitution, incitement of resistance to or undermining of implementation of the Constitution, laws, or administrative regulations;

(2) endangerment of the national unity, sovereignty or territorial integrity; leaking state secrets; endangering national security; harming national dignity,honor or interests; advocating terrorism or extremism;

(3) Belittling exceptional ethnic cultural traditions, incitement of ethnic hatred or ethnic discrimination, violations of ethnic customs, distortion of ethnic history or ethnic historical figures, injuring ethnic sentiments or undermining ethnic unity;

(4) Inciting the undermining of national religious policy, advocating cults or superstitions;

(5) endangerment of social morality, disturbing social order, undermining social stability; promoting pornography, gambling, drug use, violence, or terror; instigation of crimes or imparting criminal methods;

(6) Violations of the lawful rights and interests of minors or harming the physical and psychological health of minors;

(7) insults of defamation of others, or spreading others' private information and infringement of others' lawful rights and interests;

(8) other content prohibited by laws or administrative regulations.

Article 17: Legal persons and other organizations shall send films on which production is complete for review at the competent authorities for film of people's governments of provinces, autonomous regions or directly controlled municipalities.

The competent departments for film under the State Council or of people's governments for provinces, autonomous regions, or directly-governed municipalities shall make a review decision within thirty days of receiving an application. Where the provisions of this law are complied with, release is approved, a 'film release permit' is awarded, and it is announced to the public; where the provisions of this law are not complied with, release is not approved and the applicant is informed of the reason in writing.

The competent departments for film under the State Council shall formulate specific standards for improving review of films, and release them to the public. The formulation of the specific standards for improving review of films shall be released to the public for solicitation of public comments, and organize experts to conduct debate.

Article 18: At least 3 experts shall be organized to conduct appraisals and the experts are to submit appraisal comments. Where legal persons or other organizations have objections to experts' appraisal comments, the competent departments of film under the State Council or for a province, autonomous region or directly-governed municipality may separately organize experts for a re-appraisal. Experts' appraisal comments shall be an important basis for making review decisions.

The appraising experts provided for in the preceding paragraph, includes experts from the experts bank and experts specially recruited on the basis of film themes. Specific measures on selection of experts and appraisals are to be formulated by the competent departments for film under the State Council.

Article 19: Where films that have received a 'film release permit' need to modify content, the provisions of this law shall be followed in reporting for a new review.

Article 20: Films that have completed production and obtained public film release permits may participate in film festivals (exhibitions). Where intending to participate in foreign film festivals (exhibitions), legal person or other organizations shall send the relevant materials for recording with the competent departments for film under the State Council or for a province, autonomous region or directly-governed municipality, before the foreign film festival is held.

Article 21: Legal persons or other organizations producing films shall put the film release permit id in the film's opening sequence, where a film showing might attract minors or other audiences that are physically or psychologically inappropriate, a warning should be given.

Films that have not obtained a film release permit must not be distributed or screened, must not be transmitted through the internet, telecommunications networks, radio and television networks or other information networks; and must not be made into a/v products; except where the State has other provisions, those provisions control.

Article 22: Citizens, legal persons, and other organizations may take on the development processing and post production operations for foreign films, but must not take on relevant operations for foreign films that have content harmful to the nations' dignity, honour or interests, that is harmful to social stability, hurts the feelings of the ethinicity, and so forth.

Article 23: Film archive institutions established by the State receive, collect, organize, preserve and release film archives to the public in accordance with law.

Film archive institutions established by the state shall be allotted the necessary equipment, employ advanced technology, and raise the level of modernity in film archives management.

Legal persons or other organizations producing films follow the provisions of the 'PRC Archive Law'; to do a good job of preserving national film archives and transferring, donating and storing film archives to the film archive institutions.

Chapter III: Film Distribution and Screenings

Article 24: Where enterprises have the appropriate staff and funding requirements for engaging in film distribution activities, they may engage in film distribution activities with the permission of the competent departments for film under the state council or other the province, autonomous region, directly controlled municipality where they are located.

Where enterprises and individually owned businesses have the appropriate staff, technology, equipment and other resources for engaging in film screening activities, they may engage in film screening activities in movie theaters and other fixed screening venues with the permission of the local county level people's government for their location.

Article 25: Competent departments for film responsible under the provisions of this law for reviewing and approving film distribution and screening activities shall make a decision to approve or not approve within thirty days of receiving an application. Where requirements are met, approval is given and a film distribution business permit or a film screening business permit is issued and this is publicly announced; where requirements are not met, approval is not given and the applicant is notified in writing of the reasons.

Article 26: Enterprises and individuals engaging in mobile screening of films shall record their name or the name of the operator, their address, their contact information, the screening equipment and other circumstances to the competent department for film at the county level people's government where the operation is located.

Article 27: The State will increase the extend to support for rural public interest film screening , with governments paying to establish and improve service networks for rural public interest film screening , continuously improving the capacity of rural areas for film viewing, and overall meeting the demand of rural film audiences.

People's governments at the county level or above shall putting rural public interest film screenings within the plan for establishing cultural services systems, and follow relevant national provisions in giving subsidies for rural public interest film screenings.

Those engaging in rural public interest film screening activities must not falsely report, misdirect, or otherwise defraud the rural public interest film screening subsidy fund.

Article 28: The departments for education and for film under the State Council may jointly recommended films beneficial for minors' healthy upbringing and support their free viewing by students in compulsory education.

The State encourages theaters and enterprises or individuals engaged in mobile film screening activities to adopt various measures such as ticket discounts, establishing screening rooms with different set ups, or community screening to facilitate film viewing by minors, the elderly, disabled persons or low income urban or rural residents, city workers, and others; the local people's governments where theaters and enterprises or individuals engaged in mobile film screening activities are located may give them awards or subsidies.

Article 29: Movie theaters shall make reasonable arrangements for the number of screenings and screening times of mainland produced films, and the must not account for less that 2/3 of the theaters total film screening times.

Movie theaters, and enterprises or individuals engaging in mobile screening activities, shall ensure the quality of film screenings.

Article 30: Movie theater facilities and equipment, as well as equipment used in mobile screenings, shall comply with national standards for film screenings.

Movie theaters shall install computerized ticket sales systems complying with the relevant national provisions, and conduct accounting in accordance with law.

Article 31: Films being screened must not be recorded by any person without the permission of the rights holders. Where recording is discovered, movie theater personnel have the right to stop it; and where the discouragement is not heeded, they have the right to request people leave the premises.

Article 32: The State encourages movie theaters to show public interest advertisements before the start of film screenings.

Theaters must not show advertisements between the time indicated for the start and conclusion of the film.

Article 33: Theaters shall comply with laws and administrative regulations such as for public security, fire control, and public venue health , maintaining public order and a healthy environment in venues for screenings, protecting the safety and health of audiences.

Explosive, inflammable, radioactive, toxic, and corrosive articles must not be brought into movie theaters or other screening locations by any person; guns, munitions, or controlled instruments must not be unlawfully brought into movie theaters or other screening locations; where the unlawful possession of the items above is discovered, staff shall refuse entry.

Article 34: Film distribution companies and movie theaters shall provide truthful and accurate statistics on box office sales, and must not use fake transactions, falsely concealing ticket sales or other improper methods to trick or mislead audiences, disrupting order of the film marketplace.

Article 35: Organization of a film festival (exhibition) that involves foreign entities must be upon the approval of the competent department for film under the State Council of of a provincial, autonomous region, or directly governed municipality people's government.

Chapter IV: Support and Safeguards for the Film Industry

Article 36: The state supports the creation and production of the following films:

(1) Major thematic films carrying forward the core socialist values;

(2) films promoting minors ' healthy upbringing;

(3) Films demonstrating artistic innovation and promoting progress in the arts;

(4) Films that promote the development of scientific education and the popularization of science and technology;

(5) Other films that comply with national support policies.

Article 37: The State drives relevant cultural industry capital and funds to increase the degree of investment in the film industry. Government funds shall be arranged on the basis of a comprehensive consideration of the different stages and times of the development of the film industry, combined with the national financial situation and needs of developing the economy and society,

The State establishes and improves relevant financial and accounting systems on the basis of the characteristics and actual circumstances of the film industry.

Article 38: The State implements the necessary tax incentive policies to promote the development of the film industry, specific methods are to be formulated by the competent tax departments under the State Council in accordance with the provisions of tax laws and administrative regulations.

Article 39:Local people's governments at the county level and above shall, on the basis of the people's desires and the needs of developing the film market, put the construction and reformation of movie theaters into the people's economic and social development plans, land use plans, urban and rural plans, and so forth.

Local people's governments at the county level and above should follow relevant national provisions to effectively ensure land desired for theaters, and vitalize existing land resources to support the establishment of theaters.

Article 40:The state encourages financial institutions to provide financing services to those engaged in film activities and improving basic film facilities, to lawfully develop mortgages for film intellectual property rights, and to support development of the film industry through terms of credit and other means.

The State encourages insurance agencies to lawfully develop insurance products necessary for the development of the film industry.

The State encourages financing security institutions to provide financial security for the film industry in accordance with law, and to use re-collateral, joint mortgages, combined mortgages and insurance to distribute risk.

For production of films announced by the competent departments for film under the State Council in accordance with this Law, follow the relevant national provisions to reasonably determine the loan period and interest.

Article 41: The State encourages legal persons and other organizations to conduct cross-border investment through means such as overseas cooperation on movie production, to lawfully ensure their foreign trade, cross-border financing and investments, and other reasonable expense requirements.

Article 42: The State carries out a support plan for young talent in film.

The State supports schools of higher learning, secondary vocational school, and other educational or training establishments in developing specialized courses related to film, employing various methods to cultivate appropriate talent necessary for developing the film industry.

The State encourages legal persons and other organizations engaged in film production to participate in cultivation of talent at schools.

Article 43:The State employs measures to support rural areas, border areas, impoverished areas and ethnic areas carry out film activities.

The State is to strengthen efforts on dubbing and subtitling of films into minority languages, to satisfy the viewing demand of audiences in ethnic regions areas.

Article 44:The State supports the translation of exceptional films into foreign languages, and comprehensively uses diplomatic, cultural, educational, and other communication resources to carry out activities promoting the film industry overseas.

The State encourages citizens, legal persons, and other organizations, to engage in overseas promotion of films.

Article 45:The State encourages social forces to develop the film industry through means such as donations and support, and gives preferred treatment in accordance with law.

Article 46:The competent departments for film of people's governments at the county level or above shall strengthen routine oversight and management of film activities, and record units and individuals engaged in film activities' receipt of administrative punishments for violations of this law's provisions in credit records and announce them to the public.

Chapter V: Legal Responsibility

Article 47:Where film production, release, or screening activities are engaged in without approvals or authorization, the competent departments for film of people's governments at the county level or above, in accordance with their duties and division of labor, stop it, confiscate the film and unlawful gains, and also tools and equipment used to engage in the unlawful activities; where unlawful gains are 50,000 yuan or more, a concurrent fine of between 5 and ten times the amount of the illegal gains is given; where there are no unlawful gains or the unlawful gains are less than 50,000 yuan, a concurrent fine of up to 250,000 may be given.

Article 48:In any of the following situations, the original permit-issuing organ will revoke or withdraw the relevant permits; the competent departments for film at the county level or above, in accordance with their duties and division of labor, will confiscate unlawful gains; where unlawful gains are 50,000 yuan or more, a concurrent fine of between 5 and ten times the amount of the illegal gains is given; where there are no unlawful gains or the unlawful gains are less than 50,000 yuan, a concurrent fine of up to 250,000 may be given:

(1) Fabrication, alteration, leasing, lending, or sale of permits or approval and supporting documents provided for in this Law, or other forms of unlawful transfer of permits or approval and supporting documents provided for in this Law;

(2) Obtaining permits or approval and supporting documents provided for in this Law through fraud, bribery or other improper methods.

Article 49: In any of the following situations, the original permit-issuing organ will revoke permits; the competent departments for film at the county level or above, in accordance with their duties and division of labor, will confiscate films and unlawful gains; where unlawful gains are 50,000 yuan or more, a concurrent fine of between 10 and 20 times the amount of the illegal gains is given; where there are no unlawful gains or the unlawful gains are less than 50,000 yuan, a concurrent fine of up to 500,000 may be given.

(1) Distribution and screening of films that have not obtained a film release permit

(2) Altering the content of a film after obtaining a film release permit, and distributing, screening, or sending it for exhibition without following provisions to newly obtain a film release permit;

(3) Providing films that have not received a film release permit for participation in a film festival (exhibition).

Article 50:Where processing, post-production or other operations on foreign films with content that harms China's national dignity, honor and interests, endangers social stability, harms ethnic sentiments, or has other such content is carried out; the competent departments for film of people's governments at the county level or above, in accordance with their duties and division of labor, stop the unlawful activities and confiscate films and unlawful gains; where unlawful gains are 50,000 yuan or more, a concurrent fine of between three and five times the amount of the illegal gains is given; where there are no unlawful gains or the unlawful gains are less than 50,000 yuan, a concurrent fine of up to 150,000 may be given. Where the circumstances are serious, the competent departments for film report to the administrative departments for industry and commerce, and the department for industry and commerce will revoke their business license.

Article 51:Where movie theaters do not accurately calculate and provide sales receipts, the relevant departments for film of people's governments at the county level or above will give a fine of between 50,000 and 500,000 yuan; and, where the circumstances are serious, order them to stop business for rectification; where the circumstances are especially serious, the original permit-issuing organ will revoke their permits.

Where movie theaters show advertisements during the times that it was indicated a movie would begin and conclude the screening , the competent departments for film of people's governments at the county level or above will give a warning and order corrections; where the circumstances are serious, a fine of between 10,000 and 50,000 is given.

Article 52:Where, without approval or authorization, legal persons or other organizations organize a film festival (exhibition) that involves foreign entities, the competent department for films under the State Council or the competent department for films of a people's government for a province, autonomous region or directly governed municipality, will , in accordance with their duties and division of labor, stop the unlawful activities and confiscate films participating in the event and any unlawful gains; where unlawful gains are 50,000 yuan or more, a concurrent fine of between 5 and 10 times the amount of the unlawful gains is given; where there are no unlawful gains or the unlawful gains are less than 50,000 yuan, a concurrent fine of up to 250,000 may be given; where the circumstances are serious, a film festival (exhibition) involving foreign entities may not be organized for up to 5 years from the date on which punishment was received.

Where individuals organize film festivals (exhibitions) within mainland China that involve foreign entities, or submit films that have not received a film release permit for participation in a film festival (exhibition), the competent department for films under the State Council or the competent department for films of a people's government for a province, autonomous region or directly governed municipality, will , in accordance with their duties and division of labor, stop the unlawful activities and confiscate films participating in the event and any unlawful gains; where unlawful gains are 50,000 yuan or more, a concurrent fine of between 5 and 10 times the amount of the unlawful gains is given; where there are no unlawful gains or the unlawful gains are less than 50,000 yuan, a concurrent fine of up to 250,000 may be given; where the circumstances are serious, a film festival (exhibition) involving foreign entities may not be organized for up to 5 years from the date on which punishment was received.

Article 53: 法人、其他组织或者个体工商户因违反本法规定被吊销许可证的,自吊销许可证之日起五年内不得从事该项业务活动;其法定代表人或者主要负责人自吊销许可证之日起五年内不得担任从事电影活动的法人、其他组织的法定代表人或者主要负责人。

Article 54:In any of the following situations, punishment is given in accordance with the relevant laws, administrative regulations, and relevant national provisions:

(1) Violating relevant national provisions to act on one's on accord in making a/v products of films that have not obtained a film release permit;

(2) Violating relevant national provisions by using information networks such as the internet, telecommunications networks or radio and television networks to transmit films that have not obtained a film release permit;

(3) Defrauding rural public interest film screening subsidy funds by making false reports, misrepresentations, or other means;

(4) Violating intellectual property rights related to films;

(5) Failing to accept, collect, process, preserve, or transfer film archives in accordance with law.

Where movie theaters have the conduct of the fourth item of the preceding paragraph, and the circumstances are serious, the original permit-issuing organ shall revoke the permit.

Article 55:Where the staff of competent departments for film or other relevant departments in people's governments at the county level or above have any of the following situations, and a crime is not constituted, sanctions are given in accordance with law:

(1) Exploiting the convenience of the office to receive others' assets or other benefits;

(2) Violating this law in approval activities;

(3) Not performing supervision duties;

(4) Not investing when discovering illegal conduct;

(5) Corruption or misappropriation of subsidies funds or special capital and funding for public interest screenings of films in rural areas;

(6) Other circumstance violating the provisions of this Law by abusing professional powers, dereliction of duties, or improper conduct for personal gain.

Article 56:Where violations of the provisions of this law cause harm to others' persons or property, civil liability is borne in accordance with law, where a crime is constituted, criminal responsibility is pursued in accordance with law;

Where, having received administrative punishments for violations of this law two or more times within two years, one again exhibits conduct that should be punished under this law, a heavier punishment is given.

Article 57:Competent departments for film of people's governments at the county level or above, and their staff, shall strictly follow the types and range of punishments provided by this law, carrying out administrative punishments on the basis of the nature of the conduct and specific circumstances; specific measures will be drafted by the competent departments for film under the State Council.

When competent departments for film of people's governments at the county level or above conduct an investigation of conduct for which their is evidence showing is a violation of this law, they may seal off venues or facilities related to the unlawful conduct, or seal or seize property used in the unlawful conduct.

Article 58:Where parties are dissatisfied with the administrative actions that competent departments for film of people's governments at the county level,or above or other departments, take under this law, they may apply for an administrative reconsideration in accordance with law or raise an administrative lawsuit; of these, where there is dissatisfaction with a decision to not approve a film's release by the competent department for film under the State Council, an application shall first be made for an administrative reconsideration, and those dissatisfied with the administrative reconsideration decision may raise an administrative lawsuit.

 

Chapter VI: Supplementary Provisions

Article 59:Where foreign capital is used in the People's Republic of China territories to set up an enterprise engaging in film activities, follow the relevant national provisions.

Article 60:This law shall take effect on XXXXX.

 

 

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