Issues Foreign Video Game Developers Face in Introducing Online Games to the Chinese Market

With the rapid growth of China's online video gaming market, China has become a particularly appealing target market for both Chinese and foreign online game developers, particularly those developing Massively Multiplayer Online Role-Playing Games (MMORPG). In 2009, 35 imported online games obtained approval for release in China, and imported games have accounted for 38.8% of China's CNY 25.8 billion online gaming industry.

I. Introduction

In China, a series of regulations have been promulgated to directly govern online gaming, the latest of which is the Interim Measures on the Administration of Online Games (the "Measures") issued by the PRC Ministry of Culture on June 3, 2010, and effective as of August 1, 2010. The Measures expand upon previous legislation regulating online games and provide updated and clearer rules regarding permissible content, market access, game mechanics, administration and supervision from the state, and potential legal