Hollywood Studios Reach Deal With China's Taobao on Anti-Piracy Efforts

The Chinese e-commerce giant pledges more aggressive action to curtail counterfeits.

The Motion Picture Association has announced that it has reached a memorandum of understanding with Chinese's largest e-commerce company Taobao to deal with counterfeit and copyright infringing works on the site.

Last year, Taobao appeared on the United States Trade Representative's notorious markets list. Taobao is operated as a unit of the Alibaba Group, which engaged China's Ministry of Commerce to protest the appearance.

Since then, the Chinese company has been negotiating with the MPA, the international counterpart to the MPAA, whose members include Fox, Sony, Disney, and Warner Bros.

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The parties have now signed off on a pact.

According to the MPA, Taobao will work with Hollywood studios to identify and remove listings of counterfeits and work with law enforcement to pursue serial offenders. The agreement further calls for shops on Taobao.com to hold a valid "publication license."

Mike Ellis, president and managing director, MPA Asia Pacific, calls the memorandum of understanding a "very significant step in promoting the legitimate sale and distribution of audio-visual content on the Internet. We are very confident of seeing positive and immediate results arising from this initiative.

Taobao holds as much as 70 percent of China's e-commerce marketshare, according to Reuters.

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