Online Audiovisual Transmission for Sohu.com (SOHU)

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SOHU » Topics » Online Audiovisual Transmission

These excerpts taken from the SOHU 10-K filed Feb 26, 2009.

Online Audiovisual Transmission

On July 6, 2004, the SARFT issued the Measures for the Administration of the Transmission of Audiovisual Programs over Information Networks such as the Internet, which came into effect on October 11, 2004. These measures provide that Websites authorized to disseminate news may apply to the SARFT to obtain a Permit for the Network Transmission of Audiovisual Programs allowing the online dissemination of streaming video. In accordance with these measures, we applied to the SARFT for this permit in 2005, but have not yet obtained said Permit.

On December 20, 2007, the SARFT and the MIIT jointly issued the Rules for the Administration of Internet Audiovisual Program Services (or Document 56), which came into effect as of January 31, 2008. The rules require all online audio and video service providers to be either state-owned or state-controlled. They also encourage state-owned entities to actively invest in online audiovisual services. However, further to this, a press conference on February 3, 2008, the SARFT and the MIIT clarified that online audio-visual service providers that were already lawfully operating prior to the issuance of Document 56 may re-register and continue to operate without becoming state-owned or controlled, provided that such providers do not engage in any unlawful activities. This exemption will not be granted to service providers set up after Document 56 was issued. As we were already engaged in online audiovisual transmission prior to the issuance of Document 56, we are presumably exempted from the requirement of being state-owned or state-controlled. Sohu Internet obtained an online audiovisual transmission license from SARFT on May 31, 2008.

Online Audiovisual Transmission

STYLE="margin-top:6px;margin-bottom:0px">On July 6, 2004, the SARFT issued the Measures for the Administration of the Transmission of Audiovisual Programs over Information Networks such as the
Internet, which came into effect on October 11, 2004. These measures provide that Websites authorized to disseminate news may apply to the SARFT to obtain a Permit for the Network Transmission of Audiovisual Programs allowing the online
dissemination of streaming video. In accordance with these measures, we applied to the SARFT for this permit in 2005, but have not yet obtained said Permit.

SIZE="2">On December 20, 2007, the SARFT and the MIIT jointly issued the Rules for the Administration of Internet Audiovisual Program Services (or Document 56), which came into effect as of January 31, 2008. The rules require all
online audio and video service providers to be either state-owned or state-controlled. They also encourage state-owned entities to actively invest in online audiovisual services. However, further to this, a press conference on February 3, 2008,
the SARFT and the MIIT clarified that online audio-visual service providers that were already lawfully operating prior to the issuance of Document 56 may re-register and continue to operate without becoming state-owned or controlled, provided that
such providers do not engage in any unlawful activities. This exemption will not be granted to service providers set up after Document 56 was issued. As we were already engaged in online audiovisual transmission prior to the issuance of Document 56,
we are presumably exempted from the requirement of being state-owned or state-controlled. Sohu Internet obtained an online audiovisual transmission license from SARFT on May 31, 2008.

STYLE="margin-top:18px;margin-bottom:0px">Internet Publishing

The Rules for the Administration of the
Publications Market, issued by the GAPP on July 16, 2003, define the online distribution of publications as the offering of online subscriptions for, and the purchase, storage, shipment, and sale of, publications over the Internet. On
June 27, 2002, the GAPP and MIIT jointly issued the Provisional Rules for the Administration of Internet Publishing (or Internet Publishing Rules), which define “Internet publications” as works that are either selected or
edited to be published on the Internet or transmitted to end-users through the Internet for the purposes of browsing, reading, using or downloading by the general public. Such works primarily include content or articles formally published publicly
in other press such as: (a) books, newspapers, periodicals, audio-visual products and electronic publications and (b) literature, art and articles on natural science, social science, engineering and other topics that have been edited.
Under the Internet Publishing Rules, Web portals such as ours are required to apply to and register with the GAPP before distributing Internet publications.

SIZE="2">In this regard, Sohu Internet obtained approval from the Beijing News and Publications Bureau (the local arm of the GAPP) on January 26, 2004, to distribute Internet publications.

STYLE="margin-top:18px;margin-bottom:0px">Online Games and Cultural Products

On December 30, 1997, the
SPPA (renamed as the GAPP) issued the Rules for the Administration of Electronic Publications (or Electronic Publication Rules), which took effect as of January 1, 1998. The Electronic Publication Rules outline a licensing system for
business operations involving electronic publications, which are currently interpreted by the GAPP to include online games. Under the Electronic Publication Rules, if a PRC company is contractually authorized to publish foreign electronic
publications, it

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must obtain the approval of, and register the copyright license contract with GAPP. Further, pursuant to the Internet Publishing Rules, the GAPP requires
every entity wishing to operate online games to hold an Online Publishing Permit, which specifically authorizes the publishing of games on the Internet. In practice, operators that do not hold a game-specific Online Publishing Permit are allowed to
apply for GAPP approval of their online games indirectly, through a local publishing house that either holds such a permit or is qualified to undertake general electronic publishing.

FACE="Times New Roman" SIZE="2">On May 10, 2003, the MOC issued the Provisional Regulations for the Administration of Online Culture (or the Online Culture Regulations), which took effect on July 1, 2003. This regulation applies to
entities engaging in activities related to “online cultural products”, including music and video files, network games, animation features and audiovisual products, performed plays and artwork converted for dissemination via the Internet.
Pursuant to this legislation, commercial entities are required to apply to the relevant local branch of the MOC for an Online Culture Operating Permit if they engage in any of the following types of activities:

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">

•

the production, duplication, importation, wholesale, retail, leasing or broadcasting of online cultural products;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">

•

the dissemination of online cultural products on the Internet or transmission thereof to computers, fixed-line or mobile phones, radios, television sets or gaming
consoles for the purpose of browsing, reading, using or downloading such products; or

•

the exhibition or holding of contests related to online cultural products.

FACE="Times New Roman" SIZE="2">In September 2003 and December 2007, the MOC issued an Online Culture Operating Permit to Sohu Internet and Gamease, respectively, authorizing us to provide online game services. This permit is subject to annual
inspection.

These excerpts taken from the SOHU 10-K filed Feb 28, 2008.

Online Audiovisual Transmission

In December 20 2007, the SARFT and the MII jointly issued the Rules for the Administration of Internet Audiovisual Program Services (Document 56), which came into effect as of January 31, 2008. The rules require all online audio and video service providers to be either state-owned or state-controlled. They also encourage state-owned entities to actively invest in online audiovisual services. However, further to this, in a press conference on February 3, 2008, the SARFT and the MII clarified that online audio-visual service providers that were already lawfully operating prior to the issuance of Document 56 may re-register and continue to operate without becoming state-owned or controlled, provided that such providers do not engage in any unlawful activities. This exemption will not be granted to service providers set up after Document 56 was issued. As we were already engaged in online audiovisual transmission prior to the issuance of Document 56, we are presumably exempted from the requirement of being state-owned or state-controlled. We will re-register with SARFT to continue to operate our online audiovisual transmission business.

Online Audiovisual
Transmission

On July 6, 2004, the SARFT issued the Measures for the Administration of the Transmission of Audiovisual Programs over Information
Networks such as the Internet, which came into effect on October 11, 2004. These measures provide that Websites authorized to disseminate news may apply to the SARFT to obtain a Permit for the Network Transmission of Audiovisual Programs
allowing the online dissemination of streaming video. In accordance with these measures, we applied to the SARFT for this permit in 2005, but have not yet obtained said Permit.

FACE="Times New Roman" SIZE="2">In December 20 2007, the SARFT and the MII jointly issued the Rules for the Administration of Internet Audiovisual Program Services (Document 56), which came into effect as of January 31, 2008. The
rules require all online audio and video service providers to be either state-owned or state-controlled. They also encourage state-owned entities to actively invest in online audiovisual services. However, further to this, in a press conference on
February 3, 2008, the SARFT and the MII clarified that online audio-visual service providers that were already lawfully operating prior to the issuance of Document 56 may re-register and continue to operate without becoming state-owned or
controlled, provided that such providers do not engage in any unlawful activities. This exemption will not be granted to service providers set up after Document 56 was issued. As we were already engaged in online audiovisual transmission prior to
the issuance of Document 56, we are presumably exempted from the requirement of being state-owned or state-controlled. We will re-register with SARFT to continue to operate our online audiovisual transmission business.

STYLE="margin-top:18px;margin-bottom:0px">Internet Publishing

The Rules for the Administration of the
Publications Market, issued by the GAPP on July 16, 2003, define the online distribution of publications as the offering of online subscriptions for, and the purchase, storage, shipment, and sale of, publications over the Internet. On
June 27, 2002, the GAPP and MII jointly issued the Provisional Rules for the Administration of Internet Publishing, or Internet Publishing Rules, which define “Internet publications” as works that are either selected or edited
to be published on the Internet or transmitted to end-users through the Internet for the purposes of browsing, reading, using or downloading by the general public. Such works primarily include content or articles formally published publicly in other
press such as: (a) books, newspapers, periodicals, audio-visual products and electronic publications and (b) literature, art and articles on natural science, social science, engineering and other topics that have been edited. Under the
Internet Publishing Rules, Web portals such as ours are required to apply to and register with the GAPP before distributing Internet publications.

In this
regard, Sohu Internet obtained approval from the Beijing News and Publications Bureau (the local arm of the GAPP) on January 26, 2004, to distribute Internet publications.

FACE="Times New Roman" SIZE="2">Online Games and Cultural Products

On December 30, 1997, the SPPA (renamed as the GAPP) issued the Rules for
the Administration of Electronic Publications, or Electronic Publication Rules, which took effect as of January 1, 1998. The Electronic Publication Rules outline a licensing system for business operations involving electronic publications,
which are currently interpreted by the GAPP to include online games. Under the Electronic Publication Rules, if a PRC company is contractually authorized to publish foreign electronic publications, it must obtain the approval of, and register the
copyright license contract with GAPP. On July 27, 2004, the GAPP issued a Notice for the Implementation of the State Council Decision for Centralization of the Approval Power of the Electronic, which required that foreign games be
imported through the holder of Permit for Internet Publishing. At the end of 2006, the GAPP further required the holder of the Permit for the Internet Publishing to submit a monthly report stating that any foreign online game which it publishes has
not had significant changes in content since the approval.

On May 10, 2003, the MOC issued the Provisional Regulations for the Administration of
Online Culture, which took effect on July 1, 2003. This regulation applies to entities engaging in activities related to “online cultural products”, including music and video files, network games, animation features and
audiovisual products, performed plays and artwork converted for dissemination via the Internet. Pursuant to this legislation, commercial entities are required to apply to the relevant local branch of the MOC for an Online Culture Operating Permit if
they engage in any of the following types of activities:

•

the production, duplication, importation, wholesale, retail, leasing or broadcasting of online cultural products;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">

•

the exhibition or holding of contests related to online cultural products.

SIZE="1">

-14-

On May 14, 2004, the MOC issued the Notice Regarding the Strengthening of Network Game Censorship. This
notice mandates the establishment of a new committee under the MOC that will screen imported online games for politically sensitive content. The committee will censor games that “threaten state security”, “disturb the social
order”, “distort historical facts” or infringe on third party intellectual property rights.

On July 12, 2005, the MOC and the MII
promulgated the Opinions on the Development and Administration of Online Gaming, reflecting the Chinese government’s intent to foster and control the development of the online gaming industry in China.

STYLE="margin-top:12px;margin-bottom:0px">In September 2003 and December 2007, the MOC issued an Online Culture Operating Permit to Sohu Internet and Gamease Age, respectively, authorizing us to provide online
game services. This permit is subject to annual inspection.

This excerpt taken from the SOHU 10-K filed Mar 8, 2007.

Online Audiovisual Transmission

On July 6, 2004, the SARFT issued the Measures for the Administration of the Transmission of Audiovisual Programs over Information Networks such as the Internet, which came into effect on October 11, 2004. These measures provide that Websites authorized to disseminate news may apply to the SARFT to obtain a Permit for the Network Transmission of Audiovisual Programs allowing the online dissemination of streaming video. In accordance with these measures, we have applied to the SARFT for this permit in 2005. We also understand that the SARFT is adjusting its regulatory system in this area and may promulgate new legislation in 2007.

This excerpt taken from the SOHU 10-K filed Feb 28, 2006.

Online Audiovisual Transmission

On July 6, 2004, the SARFT issued the Measures for the Administration of the Transmission of Audiovisual Programs over Information Networks such as the Internet, which came into effect on October 11, 2004. These measures provide that Websites authorized to disseminate news may apply to the SARFT to obtain a Permit for the Network Transmission of Audiovisual Programs allowing the online dissemination of streaming media. In accordance with these measures, we have applied to the SARFT for this permit in 2005.

This excerpt taken from the SOHU 10-K filed Mar 25, 2005.

Online Audiovisual Transmission

On July 6, 2004, the SARFT issued the Measures for the Administration of the Transmission of Audiovisual Programs over Information Networks such as the Internet, which came into effect on October 1, 2004. These measures provide that web sites authorized to disseminate news may apply to the SARFT to obtain an Online Audiovisual Programs Transmission Permit allowing the online dissemination of streaming media. In accordance with these pieces of legislation, we have applied to the SARFT for this permit.

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EXCERPTS ON THIS PAGE:

10-K (2 sections)	Feb 26, 2009

10-K (2 sections)	Feb 28, 2008

10-K	Mar 8, 2007

10-K	Feb 28, 2006

10-K	Mar 25, 2005

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