Transcript II. The closer tie between the interests of copyright and SMEs

The Relationship between
Copyright and Small & Middle
Size Enterprises
Chao XU NCAC
Dec. 15-17, 2004 Shanghai
65127869 [email protected]
1
Catalog
• I. General information of the copyright
industry in China
• II. The closer tie between the interests of
copyright and the small & middle size
enterprises
• III. Conclusion
2
I. General information of the
copyright industry in China
• The importance of the copyright industry
in the national economy
• Copyright industry:the enterprise whose
added value mainly derives from the
exploitation of copyright, such as the
industries of publishing, radio and TV,
film, sound recording, computer software
and some Internet enterprises.
3
Publishing Industry
• the increasing rate of GDP 2003: 9%,
publishing industry 2003 : 38.364 billion RMB,
increasing rate: 11.76%
• Book publishing 1992: 10.07 billion RMB,
amounted to 0.38% of the GDP, 2003: 114.633
billion RMB, achieved at 0.98% of GDP, the
average increasing rate during 11 years: 25%,
1.78 times of the national economy.
4
Software Industry
• Software industry 1992: 4.37 billion RMB,
occupied 0.16% of GDP; 2003: 160 billion
RMB, increasing rate: 45%, the average rate
1992 to 2003: 38%, 2.71 times of that of GDP
and far beyond that of the world
• The sale and exportation of software industry
would keep an increasing rate of 30- 50% to 5060% for the following several years, and the
sale would reach 250 billion RMB in 2005
5
II. The closer tie between the interests of
copyright and SMEs
• Copyright is not only an important
element for the development of the
industries of publishing, film, sound
recording, radio & television, software
and Internet, but also has a closer tie
with the interests of some SMEs.
6
II. The closer tie between the interests of
copyright and SMEs
• In contrast to the enterprises with hightech products, the enterprises with
products of high added value of art do
not need too much investment and
advanced technology. The decisive
element for the enterprise development
rests with the creativity and the designing
capacity for the artistic form of the
products.
7
II. The closer tie between the interests of
copyright and SMEs
• China has a long history of culture and
art and lot of talented designers for
artistic design. The cost of social labor
force in general is low
• Less investment and requirement of high
tech
• the artistic designs of the products are
updated very fast. The flexibility is an
advantage for SMEs.
8
Case 1
• Dehua County of Fujian Province has 1100
enterprises producing porcelain products,
everyone consists 3-5 to 100 persons.
• Past, dull and simple designs, low annual value,
design imitation by each other accustomed,
investment environment affected
• Fujian Copyright Provincial Bureau helped the
local government to form a genius to encourage
the creativity. Porcelain products became the
pillar industry and mainly sold to the overseas.
9
Case 1
• Porcelain products in Dehua 1990: 100
million RMB; 2002: 4.5 billion RMB;
2003: 5.3 billion RMB, of which 4.15
billion RMB was from exported products.
From Jan. to Sep. 2004, the exportation
value: 4.5 billion RMB, the total value of
the exportation would be expected to be
over 5 billion RMB.
10
Case 2
• Sanchen Corporation in Hunan Province was a
small private company.
• Contribution of cartoon image “Blue Cat”:
• Learn from Disney successful experience as 1.
step: build an industrial chain of cartoon
products through the authorization of the use
of cartoon image, a TV program, and produced
related books and audiovisual products.
11
Case 2
• TV program, books, audiovisual products,
stationery, toys, realia, food, clothing,
shoes, caps, commodities, 4000 kinds of
products, with annual sales of 2 billion
RMB
• The sales of VCD and books with “Blue
Cat” design was over 80 million RMB in
a year
12
Case 2
• 1200 series of “Prankish Blue Cat 3000
Questions ” acknowledged by Guiness,
obtained the medals of the 18th to 20th
China’s TV Golden Eagle and the prize
of the 5th China’s TV Golden Children,
broadcasted in 1017 TV stations in the
mainland, Taiwan and HK S.R.
synchronously with a total air time of 500
hours every day.
13
II. The closer tie between the interests of
copyright and SMEs
• totally
8730
computer
software
companies, 57% less than 100 employees
in one company, 34 % employ 100-500
staffs in company. More than half of the
software enterprises are relatively small
size. Thus it can be seen that most
computer software companies in China
are SMEs.
14
III. Conclusion
• Copyright relates the interests of litterateur,
artists, and enterprises
• The development of reproduction and
communication technology promoted the
copyright development
• In the age of knowledge economy, the
promotional function of copyright to the
development of the social economy is becoming
more obvious.
15
III.Conclusion
• Since 1970s, the contribution made by the
copyright industry to growth of the
national economy has been in evidence in
the western developed countries.
• Starting from 1990s, the importance of
copyright industries has also been
realized and gained more concerns in the
developing countries.
16
III.Conclusion
• WIPO: in developed countries and developing
countries the portion of copyright industries in
the GDP is between 3-6%
• 2002 GDP of China: 10239.8 billion RMB, press
and publication: 397.7 billion RMB, radio and
TV: 51.4 billion RMB, software: 110 billion
RMB. These three made up 5.46% of GDP,
plus the other copyright industries, it could be
estimated that the overall outcome of the whole
copyright industries in China may occupy 6%
of the GDP.
17
III. Conclusion
• China is the biggest developing country
with a big population and weak economy
basis, in a period from the planned
economy to the market economy system.
• The development of SMEs play an
important role for the continuous rapid
growth of the national economy.
18
III. Conclusion
• As the high tech enterprise needs high cost
investment and high risk, so the development of
SMEs, whose added value mainly comes from
the exploitation of the copyright is very
important.
• The sole condition to develop such industry is
to establish successful legal environment and to
eliminate all kinds of pirated activities.
19
Thanks
www.ncac.gov.cn
20