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Publishing Chinese Editions of Foreign Magazines
in China — China Adopts New Procedures for Approval of Co-operation
Arrangements with Local Publishers
While foreign publishing houses are still unable to
invest in or control the editing and publishing of Chinese editions
of their books, magazines or newspapers in China, new procedures
just announced by the Chinese government may provide a standardized
and streamlined process for the approval of co-operation arrangements
between foreign publishers and Chinese publishers. On July 27, 2004,
the State Press and Publication Administration (SPPA) issued its
No. 25 Administrative Approval Outline under which co-operation
arrangements between foreign Chinese publishers will be approved
("Outline").
The setting for the issuance of the Outline has been
one of uncertainty and delay. China still has made no commitment
to allow foreign investment in the editing and publication sectors
for books, newspapers and magazines. Thus, investment in publishing
houses in China remains beyond the reach of foreign investors. However,
even in such a legal environment, many foreign magazines, such as
MIT Technology Review, Harvard Business Review, Newsweek,
Business Week and Elle, have managed to obtain wide circulation
of their Chinese editions in China. These publishers have found
at least two ways to get their content distributed.
1. Editing and Publishing in Foreign Jurisdictions
Many Chinese editions of foreign books, magazines
and newspapers are published in places such as Hong Kong or Singapore,
and imported into Mainland China via the few licensed import and
export agents who have the authority to import and export such material.
Thus, foreign publishers are able to export to China such material
in the same manner as they export the foreign language editions
of their books, magazines and newspapers. Since the publication
of the Chinese editions of these books, magazines and newspapers
takes place in and is subject to the laws of foreign jurisdictions,
the content restrictions imposed on such materials published in
China do not apply. As one might imagine, however, the circulation
costs for this type of export operation are relatively expensive.
2. Licensing (Co-operation) Agreement with Local Publishing
House
Although foreign individuals or companies are not
allowed to invest in Chinese publishing houses, the Chinese government
does encourage local publishing houses to cooperate with foreign
publishers in the fields of natural science, engineering, technology
and social science. Thus, many foreign publishers have entered into
licensing agreements (co-operation arrangements) with local publishing
houses to license and supply their copyrighted works to local publishers.
The local publisher will then translate the material and publish
it in its local publication.
In a circular issued by the SPPA in 2000, such a co-operation arrangement
is an approved form of agreement. Most importantly, however, under
the co-operation arrangement, the Chinese publishing house controls
the content of the book, magazine or newspaper and performs all
of the editing, content selection and publishing. The foreign publisher
is not allowed to participate in any of these processes. While these
co-operation arrangements have been available for some time, guidelines
for the approval process were non-existent and obtaining an approval
could take up to as much as two years.
On July 27, 2004, SPPA issued its Outline regarding the approval
of co-operation arrangements between Chinese and foreign publishers.
Under the Outline, the Chinese publisher is the applicant, who files
the application along with the listed supporting documentation,
such as copies of the license/co-operation agreement, a sample issue
of the proposed publication and a description of the foreign publisher,
showing that the foreign publisher is of good reputation, is "friendly
to China" and has not committed any violations of Chinese law.
The SPPA is required to approve or deny the application within 20
days from the date the completed application is filed.
The Outline covers not only the approval procedures, but also contains
some restrictions on the look and content of the publication and
the terms of the co-operation arrangement. For example, the term
of the co-operation arrangement may not exceed 5 years and the contractual
terms must be approved by the SPPA. The Outline also provides certain
restrictions on the content of the cover of the publication.
The Outline is only a general outline of the co-operation arrangement
approval process. According to the SPPA, new and more specific administrative
rules governing the approval and operation of the cooperation arrangement
will soon be released.
DWT will monitor closely the issuance of the new administrative
rules and update you on any progress. For further information on
the Outline and how it might affect your business, please contact
any member of the DWT's China Practice Group.
Published by DWT's China
Practice Group
This China Practice Alert is a publication of the China Practice/Shanghai
Office of Davis Wright Tremaine LLP. Our purpose in publishing this
Alert is to inform our clients and friends of recent legal developments
in China. It is not intended, nor should it be used, as a substitute
for specific legal advice as legal counsel may only be given in
response to inquiries regarding particular situations.
Copyright © 2004, Davis Wright Tremaine
LLP.
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