(March17, 2000)

In order to standardize online audio-video products business, protect intellectual property, crack down illegal business and promote healthy development of audio-video products, now announce related matters as follows based on theAdministrative Statute on Audio-video Products:

Article 1Licensing system shall be applied to online audio-video productsbusiness. It is forbidden to do online business without any record or approval by administrations in charge of audio-video products market.

Article 2 Operational units with approval in publishing, wholesaling, retailing or leasing can make online sales, purchase and leasing of audio-video products through their websites. It is necessary for operational units that are engaged in online audio-video products business to provide some materials of the legal representative, websites or linked websites and email address, to declare to and get approval of the local administrations (province, autonomous region or municipalities) in charge of audio-video products market.

Article 3 According to the related rules of theAdministrative Statute on Audio-video Products,the information network operational unit shall not deal with online audio-video products business unless it applies forBusiness License Audio-video Productsand gets the approval of the local administration (provinces, autonomous regions, or municipalities) in charge of audio-video products market.

Article 4 Information network operational units which are foreign-invested or Sino-foreign joint-stock cooperative ventures are forbidden to conduct online audio-video products business.

Article 5 Online audio-video products shall be legal products published by Chinese audio-video products publishing houses. The operational unit shall give clear indication of the name of the publishing house and standard coding. The approval document number shall be marked on imported publishing products.

It is forbidden to deal in audio-video products listed in Article 3 of theAdministrative Statute on Audio-video Productsand smuggled or pirated ones.

It is forbidden to conduct online business of importing finished audio-video products and download MP3 music products, as well as deal in online wholesale of audio-video products.

Article 6 The operational unit that deals in online business shall give clear indication of numbers of theBusiness License for Audio-video Productsand telephone numbers of the record-keeping administration and the license-issuing organ on remarkable place of the web pages.

Article 7 The policies and regulations of audio-video products market management shall be strictly implemented on all online businesses of audio-video products. Administration in charge of audio-video products market shall carry out punishment according to theAdministrative Statute on Audio-video Productsand related laws. For impeachment, please email to the Ministry of Culture viayx@ccnt.gov.cn.

Article 8 All operational units that deal in online business of audio-video products shall go through recording, examining and approving procedures, according to demands of the announcement, beforeMay 1st, 2000.