In light of the rapidly developing audio-video market, the government has step by step readjusted its administration of the audio-video industry. The "Regulations on the Administration of Audio and Video Products" provides for the division of functions in the administration of the industry. In 1998, the State Council further sorted out the administrative system on the principle of "streamlining, efficiency and unification," clearly assigning the administration of audio-video products' production, publication and duplication to the Press and Publication General Administration; and that of wholesale, retail, renting, showing and import of audio-video products to the Ministry of Culture. Following the suit of the central government, the local governments have also readjusted their administrative systems in this regard. So far, China has initially established market management networks at the central, provincial, prefectural and county levels. In most areas, investigation squads have been set up to keep watch on cultural markets, including the market for audio and video products. They sincerely perform the duties of supervision and administration on the audio-video market.

    Since the 1990s, the publication market supervision authorities and cultural administration authorities have cooperated closely with other relevant departments in making sustained efforts to enforce order in the audio-video market. As a result, the order of the audio-video market has been gradually improved, the number of pirated audio-video products clearly reduced, and the circulation of authorized copies greatly increased. According to incomplete statistics, from 1994 to 2004, nine CD duplicating enterprises hadtheir duplication business licenses revoked, and 200 illegal CD production lines were discovered. In August 2004, under the unified arrangement of the special IPR protection campaign, the Ministry of Culture drew up an overall plan for an intensive crackdown on infringements in the audio-video industry, in accordance with which it guided and coordinated with key cities and areas in strengthening law enforcement, and discovering and closing down a large number of underground storehouses and distribution networks of illegal audio-video products. In 2004, cultural market inspecting and management authorities throughout the country inspected audio-video businesses on 555,368 occasions,confiscating 154 million illegal copies of audio-video works. On January 12, 2005, the Ministry of Culture and the Office of the National Working Group on Intellectual Property Rights Protection launched a nationwide campaign to destroy illegal audio-video products, during which over 63.35 million copies of such products were destroyed.

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