Beijing e-License

Established in October 2007 as a 50-50 joint venture company between the subsidiary of the Group, Far Glory Limited and e-License Inc. (Japan) .

The only joint venture company of e-License Inc. (Japan) in the Greater China region for the localization of this digital copyrights management system, together with its full technical support .

Beijing e-License – Principal Business

Leveraging on China’s national policy of “3-Network Convergence” and the commitment of China in the protection of intellectual property as a member of the World Trade Organization (WTO), the Group aims to provide a comprehensive, fair and transparent digital copyrights management system, software and contents for the fixed and wireless networks, in-car navigation system/vehicle network and other digital media service providers.

Apart from setting up of a nationwide digital copyright management system, the Group was granted an exclusive right by One Stop China (an exclusive agent formed by Universal、Warner and Sony Music) for the provision of digital licensed music content to the China Unicom, such business has commenced operation in early February 2011.

1.

Digital content licensing / investment
Provision of licensed/invested digital contents in the digital domains.
 
(i) Music

  • Obtained an exclusive authorization from One Stop China (sole agent established by Universal, Warner and Sony) for the provision of licensed music content to China Unicom, such business has commenced operation in early February 2011.

  • Obtained an exclusive authorization from avex for the provision of licensed Japanese music content to Baidu, such business has commenced operation in May 2010.

  • Co-operate with CAVCA to set up a nationwide video/audio database. Established in May 2008, CAVCA is the only organization approved by the National Copyright Administration of the People’s Republic of China. The Group is the sole partner of CAVCA in digital copyrights management.

  • AsiaMuse (亞神音樂): a major record label in Taiwan focusing on Chinese pop music. It has business operations across China, Japan and Taiwan. Famous artists include Lala Hsu (徐佳瑩), Tanya Chua (蔡健雅), etc.

  • Wind Music (風潮音樂): The largest acoustics record label in Taiwan. Some of its major publications include folk music, religious music and music for therapy.
(ii) Multimedia / Digital Video Content

  • The sole agent of Japanese popular multi-media drama series “Revolution station 5 +25” (「革命station 5+25」) in China, Hong Kong, Taiwan, Macau and has commenced broadcasting on CMMB* mobile channel in December 2010.

    “Revolution station 5 +25” is filmed by the same production team of “Crying Out Love in the Centre of the World”(「在世界中心呼喚愛」) and “20th Century Boys” (「 二十世紀少年」), including its director, Yukihiko Tsutsumi (堤幸彥).

    * CMMB is a wholly owned subsidiary of the State Administration of Radio, Film and Television (廣電總局), responsible for the investment, business operation and system design of national mobile satellite mobile multimedia broadcasting projects, development of satellite broadcasting related technology and signal transmission services.
(iii) Japanese Content Portal
  • Commend broadcasting of audio and video contents from Japan and Taiwan on CMMB mobile channel in December 2010.

 
2.

e-License digital copyrights management system
Commenced provision of digital copyrights management system form the telecommunication and the Internet; will further extend to in-car navigation system, BGM and Karaoke (Web-based), etc.
 

License digital copyrights management system – business development strategies
Note: Will commence business preparation in other digital media including Karaoke (Web-based), public broadcasting and online music and Internet bar in 2012 and 2013.
 
(i) Telecommunication

  • Entered into a tripartite agreement with CAVCA and China Unicom for the provision of e-License digital copyrights management system and allocation of copyrights income on the central music platform of the telecommunication provider.

  • Commence full operation nationwide in the first/second quarter of 2011.

  • Using the above operation model as a reference, in final stage of negotiation with other telecommunication providers in China, will commence operation in the third/fourth quarter of 2011.
(ii) Internet

  • Will collaborate with Baidu for the provision of information, music, animation and comics, Japanese audio and video contents and comprehensive e-License digital copyrights management system and will extend its services to other major Internet portals.

  • Co-operate with CAVCA and major record labels to provide e-License digital copyrights management system nationwide on the Internet.
(iii) In-car navigation system

  • In-car navigation system is a revolutionary service which integrates with GPS, 3G and the Internet to provide users interactive information such as navigation, entertainment, communication, e-commerce and mobile KTV anytime and anywhere.

  • The navigation system is jointly developed by Toyota Group and e-License Inc. (Japan) , targets high-ended vehicles of Toyota and Japanese automakers in the first stage and will extend to other high-ended brands in the later stage.

  • Provision of an integrated copyrights protected music, entertainment contents and other value-added services and using e-License digital copyrights management system for allocation of copyrights income.
(iv) Other digital media to be developed

  • To provide digital copyrights management system and licensed contents for BGM, Internet bar and Karaoke (Web-based) via fixed line and broadband network and set the industry standard for digital copyrights protection nationwide.

Note: The State Council (國務院) issued “The temporary measure for payment for broadcasting by radio and television stations" in November 2009. From 2010 onwards, radio and television stations are required to pay copyrights owners based on the advertising income or length of broadcasted music. This indicates the beginning of public broadcasting fee era in China.

 
3.

Professional Sports Events Licensing Business
(i) Professional Sports Events

  • The Group acquired 25% equity interests of China Sports Media Limited (體奧動力(北京)體育傳播集團) (“China Sports”) in January 2011.

  • China Sports possesses diversified content covering popular professional sporting events across China, around Asia and the rest of the world, including the Chinese Basketball Association (CBA) , the Chinese Soccer League (CSL) , AFC Champions League, World Cup Qualifying, AFC Asian Cup, Mission Hills Golf World Cup, FIFA Club World Cup, FIVB Volleyball World Championships, etc.

  • China Sports is a long-term partner of All-China Sports Federation in the TV coverage of sports contents. The events and sports features distributed annually by China Sports of more than 2,000 hours, being market leader of professional sports licensed events.

  • The professional sports event distributed by China Sports accounts for more than 50% market share in the PRC, being the largest distributor of professional sports licensed media content.

  • China Sports has established a new order in the Chinese domestic market for professional sports TV copyrights, effectively protected the commercial interests of copyright owners.

  • China Sports established a secure and efficient strategic partnership with various local and overseas TV stations and new media, such as Shanghai Media Group, Inc. (上海東方傳媒集團有限公司), Beijing Television Station (北京電視台), CCTV (中央電視台), Guangdong Television Station (廣東電視台), Sohu (搜狐), Sina (新浪), Youku (優酷) .
(ii) Future development of professional sports events licensing business

  • Business of China Sports has covered most of the local television channels in the PRC, with the increasing popularity of 3G and the Internet in the PRC, there will be a natural extension of business to the telecommunication and the Internet, as well as in-car navigation systems/vehicle network and other digital media fields, meanwhile will also actively introduce overseas professional sports licensed content to establish a comprehensive digital media platform for global professional sports licensed content.