Chinese consumers may now have to wait just as long to watch films and shows on the Internet, as they do to watch them in theaters or on television. That is, if Web and mobile companies try to follow Beijing's rules and the government cracks down on those that it thinks don't try hard enough.

Beijing is taking aim at much of the popular material found on the Web that would be forbidden from being screened or broadcast in the country's traditional media. The State Administration of Radio Film and Television (SARFT) said in a Web notice this week that all films, television series, cartoons and documentaries disseminated through the Internet or mobile phones must first be approved by Beijing's censors. Content involving religion, sex, violence, sensitive political issues, or perceived damage to national image, social harmony or interests--as always--could be banned or edited.

"SARFT is trying to apply the same standards and rules to the online world that they already applied to traditional media. They're trying to make the cyberspace and real life space more consistent in terms of what video is possible," said Rebecca MacKinnon, a media studies professor at University of Hong Kong who currently conducts research on Internet control.

That means a longer wait for Internet viewers, as approval for films and shows on Chinese theatres and television currently could take several months to over a year. The government also green-lights a very limited number of foreign films for domestic screening each year.

Microsoft's latest global anti-piracy effort has provoked a popular outcry and a legal challenge in China. The main issue: Microsoft's bundling of anti-piracy programs with system updates, a practice that is also under challenge in the United States. Chinese regulatory and industry reactions underscore the strength of the country's resistance to the tech giant's actions.

A downloadable update from Microsoft (nasdaq: MSFT) for Windows XP Professional users in China distributed last week resets desktop backgrounds to black every hour for those computers running pirated Microsoft software. It also posts a persistent desktop alert in the lower right corner warning users they are running bootleg software.

The program prompted a Beijing lawyer, Dong Zhengwei, to file a privacy complaint this week with the State Public Security Bureau and an anti-monopoly complaint with the State Administration for Industry and Commerce. Dong charged that Microsoft's action violates user privacy, by intruding on users' computers without their permission. He also claims that Microsoft is abusing its dominant position in violation of the country's anti-monopoly law, passed in August. Microsoft, however, stressed the importance of protecting intellectual property and said its update complies with Chinese regulations.

Dong's privacy and anti-monopoly claims have no legal basis, said Steven Dickinson, a China-based lawyer for Harris Moure, because Chinese law does not uphold the concept of "user privacy," and the anti-monopoly law exempts legal monopoly arising from intellectual property protection.

China is gearing up to launch or fight World Trade Organization disputes with the U.S. more aggressively, but it doesn't have enough of its own lawyers to do it. Chinese law firms are scrambling to build up their WTO practices, but they face industry challenges. So it looks like Beijing will stick with U.S. law firms to fight its WTO battles, while China's legal industry races to ameliorate its competitive disadvantage, in a process that could take many years.

China has only started to play a starring role in the WTO dispute process (See Part One of Series: "China's Coming Of Age In The WTO War"). So Chinese law firms simply do not have the buildup of skills and experience that U.S. peers have in global trade disputes.

"We are newcomers to the WTO. We still need some time to build up full capacity," said Xiao Jin, a WTO lawyer for the mainland Chinese law firm King & Wood, which helped defend the Chinese government in the recently decided anti-piracy case filed by the U.S.

There are just three to four Chinese law firms equipped to handle WTO disputes, based on various lawyers' estimates. The U.S. has three to four top-tier WTO law firms and about a dozen other law firms that have WTO practices.

Though the United States media have published a number of stories deriding China's intellectual property protection, those articles nearly always neglect to mention that in most instances involving trademarks, the fault lies with the foreign company, not with Chinese enforcement. The reality is that many foreign companies fail to register their trademarks in China and thus have no real right to complain about any "infringement" there. To expect protection, foreign companies must register their trademarks in China and the prudent company does this before going in.

There are actually a number of people in China who make a living by usurping foreign trademarks and then selling a license to that trademark to the original license holder. Once one comes to grip with the fact that China, like most of the rest of the world is a "first to file" country, one can understand how easy this usurpation is, and also, how easy it is to prevent it.

The fact that you are manufacturing your product in China just for export does not in any way minimize the need for you to protect your trademark. Once someone registers "your" trademark in China, they have the power to stop your goods at the border and prevent them from leaving China.

The key to protecting a trademark in China is actually very simple: register it in China.

China's trademark requirements are actually quite similar to those in most other countries. The trademark must not conflict with an existing Chinese trademark and it must be distinctive. China allows for registration of all marks for goods, services, collective marks and certification marks.

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