Decree of the State Council of the People’s Republic of China

No. 528

The Decision of the State Council on Amending the Regulation on the Administration of Commercial Performances is hereby promulgated and shall be enter into force as of the day of promulgation.

Premier Wen Jiabao

July 22, 2008

Decision of the State Council on Amending the Regulation on the Administration of Commercial Performances

The State Council decided to amend Paragraph 1 of Article 12 of the Regulation on the Administration of Commercial Performances as follows: “Investors from Hong Kong Special Administrative Region (Hong Kong SAR) and Macao Special Administrative Region （Macao SAR）may establish equity or cooperative joint or solely funded performance brokerage institutions and business entities of performance places in the mainland. The performance brokerage institutions of Hong Kong SAR and Macao SAR may set up branches in the mainland.”

The Decision enters into force as of the day of promulgation.

The Regulations on the Administration of Commercial Performances has been amended according to the Decision correspondingly and is re-promulgated.

Regulation on the Administration of Commercial Performances

(Promulgated as the No.439 order of the State Council of the People’s Republic of China on July 7, 2005 and amended according to the Decision of the State Council on Amending the Regulation on the Administration of Commercial Performances of July 22, 2008)

Chapter 1 General Provisions

Article1 The Regulation is formulated for the purposes of enhancing the administration of commercial performances, promoting the development of cultural industry, boosting the socialist art cause, catering for the cultural needs of the people and advancing the socialist spiritual civilization.

Article 2 The commercial performances mentioned in the Regulation refers to the onsite art performances for the general public for profit making purposes.

Article 3 The commercial performances shall adhere to the orientation of serving the people and the socialism, give priority to the social benefits, balancing the social and economic benefits and enrich the cultural life of the people.

Article 4 The state encourages the artistic performance organizations and performers to create and perform programs with high ideological and artistic level, which reflect excellent national cultural traditions and are popular among the people, and encourages them to give gratuitous or preferential performances in rural areas and industrial and mining enterprises and for children.

Article 5 The competent department of culture under the State Council shall be responsible for the supervision and administration of the commercial performances across the country. The public security department and the administration for industry and commerce under the State Council shall be responsible for the supervision and administration of commercial performance according to their respective functions.

The competent departments of culture under local people’s governments at or above county level shall be responsible for the supervision and administration of the commercial performances in places under their jurisdictions. The public security departments and administrations for industry and commerce under local people’s governments at or above county level shall, according to their respective functions, be responsible for the supervision and administration of commercial performances in places under their jurisdiction.

Chapter 2 Establishment of Business Entities of Commercial Performances

Article 6 For establishing an artistic performance organization, the applicant shall have full-time performers and equipment that can meet the requirements of its performance business.

For establishing a performance brokerage institution, the applicant shall have three or more full-time performance brokers and funds that can meet the needs of its business.

Article 7 For establishing an artistic performance organization, the applicant shall apply to the competent department of culture under the people’s government at county level. For establishing a performance brokerage institution, the applicant shall apply to the competent department of culture under the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government. The competent departments of culture shall make a decision within 20 days upon its acceptance of the application. They shall issue the commercial performance license for those approved, and notify the applicants in written form and make an explanation for those disapproved.

An applicant shall take the license to go through registration formalities in the industrial and commercial administration department and obtain a business license after has obtained the commercial performance license.

Article 8 For establishing a business entity of performance places, the applicant shall go through registration formalities in the administration for industry and commerce, get a business license and handle approval formalities in accordance with the relevant laws and administrative regulations on fire fighting and sanitation, etc.

A business entity of performance places shall, within 20 days upon its obtaining of its business license, report to the competent department of culture under the people’s government at the county level at the place where it domiciles for file.

Article 9 Where an artistic performance organization or a performance brokerage institution intends to change its name, domicile, legal representative or main principals or business items of commercial performances, it shall apply to the original license issuing agency for changing its commercial performance license and go through the alteration formalities in the industrial and commercial administration department by law.

Where a business entity of performance places intends to change its name, domicile, legal representative or major principals, it shall go through alteration formalities in the industrial and commercial administration department and re-filing formalities in the original filing agency.

Article 10 The self-employed performers engaged in commercial performances (hereafter referred as the self-employed performers) and self-employed performance brokers engaged in activities including intermediary and agency for commercial performances (hereafter referred as the self-employed performance brokers), shall go through registration formalities in the industrial and commercial administration department and obtain business license according to law.

A self-employed performer or self-employed performance broker shall, within 20 days upon his/her obtaining of business license, report to the competent department of culture under the people’s government at county level at the place where he/she registers for file.

Article 11 Foreign investors are allowed to set up China-foreign equity or cooperative joint performance brokerage institutions and business entities of performance places with Chinese investors by law, but shall not establish any China-foreign equity or cooperative joint or solely foreign-funded artistic performance organizations, or any solely foreign-funded performance brokerage institution or business entity of performance places.

For establishing a China-foreign equity joint performance brokerage institution or business entity of performance places, the investment proportion of Chinese party shall not be less than 51%; for establishing a China-foreign cooperative joint performance brokerage institution or business entity of performance places, Chinese party shall have the dominant position in business.

For establishing a China-foreign equity or cooperative joint performance brokerage institution or business entity of performance places, the applicant shall apply to the competent department of culture under the State Council via the competent departments of culture under the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government. The competent departments of culture under the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government shall make inspection opinions and submit them to the competent department of culture under the State Council for approval within 20 days upon acceptance of applications. The competent department of culture under the State Council shall make decisions within 20 days upon its acceptance of the opinions from the competent departments of culture under the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government. For those approved, commercial performance license shall be issued; and for those disapproved, written notifications shall be sent to applicants and explanations shall be made. Applicants shall go through approval formalities in accordance with relevant laws and regulations on foreign investment after have obtained commercial performance licenses.

Article 12 Investors from Hong Kong Special Administrative Region (Hong Kong SAR) and Macao Special Administrative Region （Macao SAR）may establish equity or cooperative joint or solely funded performance brokerage institutions and business entities of performance places in the mainland. The performance brokerage institutions of Hong Kong SAR and Macao SAR may set up branches in the mainland.

Investors from Taiwan may establish equity or cooperative joint performance brokerage institutions and business entities of performance places in the mainland, where the investment proportion of the mainland party shall not be less than 51% or the mainland party shall have the dominant position in business. Investors from Taiwan are not permitted to establish any equity or cooperative joint or solely-funded artistic performance organization, or solely-funded performance brokerage institution or business entity of performance places.

The approval formalities shall be accord with Paragraph 3 of Article 11 hereof.

Chapter 3 Norms on Commercial Performances

Article 13 Artistic performance organizations or self-employed performers may hold commercial performances independently, and participate in any cooperative commercial performances.

The cooperative commercial performances shall be arranged by a performance brokerage institution, but a business entity of performance places may hold cooperative commercial performances at its own places.

A performance brokerage institution may be engaged in activities including intermediary, agency and brokerage for commercial performances; a self-employed performance broker may only conduct activities of intermediary and agency for commercial performances.

Article 14 For hosting commercial performances, the applicant shall apply to the competent department of culture under the people’s government at county level at the place where the performances are hosted. The latter shall make a decision within 3 days upon its acceptance of the application. If the application meets the requirements provided in Article 26 hereof, the approval document shall be issued; if the application does not meet the requirements provided in Article 26 hereof, the application shall not be approved and the applicant shall be informed in written form and explanations shall be made.

Article 15 No entities or individuals other than performance brokerage institutions are permitted to hold commercial performances joined by artistic performance organizations or individuals from foreign countries, Hong Kong SAR, Macao SAR and Taiwan, but where an artistic performance organization holds commercial performances by itself, it may invite artistic performance organizations and individuals from foreign countries, Hong Kong SAR, Macao SAR and Taiwan.

For the holding of commercial performances joined by artistic performance organizations and individuals from foreign countries, Hong Kong SAR, Macao SAR and Taiwan, the following conditions shall be satisfied:

(1)      Having the fund that can meet the relevant needs of the commercial performances to be held;

(2)      Having two-year or more experiences of holding commercial performances; and

(3)      Having no record of violating provisions hereof within 2 years prior to the commercial performances to be held.

Article 16 Where the commercial performances with participants of foreign artistic performance organizations and individuals are not held in a singing and dancing entertainment place, the hosting entity shall apply to the competent department of culture under the State Council; where such performances are held in a singing and dancing entertainment place, the hosting entity shall apply to the competent departments of culture under people’s governments of provisions, autonomous regions or municipalities directly under the Central Government at the place where the commercial performances are held.

For holding commercial performances with participants of artistic performance organizations and individuals from Hong Kong SAR and Macao SAR, the hosting entity shall apply to the competent department of culture under people’s governments of provinces, autonomous regions or municipalities directly under the Central Government at the place where the commercial performances are held. For holding commercial performances with participants of artistic performance organizations and individuals from Taiwan, the holding entity shall apply to the competent department of culture under the State Council as well as approval agencies designated by the relevant departments under the State Council.

The competent department of culture under the State Council or the competent departments of culture under people’s government of provinces, autonomous regions or municipalities directly under the Central Government shall make decisions within 20 days upon acceptance of applications. For those accord with the provisions in Article 26 hereof, the said department shall issue approval documents; for those disaccord with the provisions in Article 26 hereof, the said department shall inform the applicants in written form and make explanations.

Article 17 The application materials for holding commercial performances shall include following items:

(1)     The names of the performance, the hosting entity and artistic performance organizations and actors participated;

(2)     The date, place and total number of performances; and

(3)     The programs and relevant visual and audio materials.

With regard to the application of holding cooperative commercial performances, written documents concerning agreements to participation made by the artistic performance organizations and actors shall also been submitted.

Where it is necessary to alter any of the items listed in the application materials of the commercial performances, the applicant shall re-apply for approval according to Article 14 and Article 16 hereof.

Article 18 When providing a performance place, a business entity of performance places shall verify the approval documents obtained by the hosting entity, and shall not provide performance place for unapproved commercial performances.

Article 19 A business entity of performance places shall ensure that the buildings and facilities of the performance place conform to the national safety standards and fire protection and safety norms, check the status of fire protection and safety facilities regularly and maintain and renew them in time.

A business entity of performance places shall formulate a security plan and a fire-control and emergency-evacuation plan.

A hosting entity that intends to hold commercial performances in a performance place, shall verity the records of the checks over fire protection and safety facilities, the security plan as well as the fire-control and emergency-evacuation plan of the business entity of performance place, and shall sign a safety responsibility agreement with the business entity of performance places regarding the prevention and handling of emergent safety accidents during the performances.

Article 20 When holding commercial performances in a pubic place, a hosting entity shall go through approval formalities in accordance with relevant laws, administrative regulations and provisions of the state on safety and fire prevention and shall set formulate a security plan and a fire-control and emergency-evacuation plan. The performance place shall be equipped with emergency broadcasting and lighting devices and have conspicuous marks at the safety entries and exits to ensure the smoothness of the safety entries and exits. If it is necessary to put up a temporary stage or stand, the hosting entity shall observe the relevant national safety standards to ensure the safety.

Article 21 When approving the commercial performances that need to put up a temporary stage or stand, the competent department of culture shall check the following documents of the hosting entity:

(1)      The conformity certification for the performance place upon check according to law;

(2)      The security plan and emergency evacuation plan; and

(3)      The legitimately obtained safety and fire protection approval documents.

Article 22 The audience capacity of a performance place shall be subject to the approval of the public security department. The audience area and the buffer area shall be demarcated by the public security department and the buffer area shall have a conspicuous mark.

The hosting entity shall produce and sell tickets according to the number of audience approved and the audience area demarcated by the public security department.

When checking tickets, if the hosting entity finds that the number of audience who have entered the performance place has reached the verified number but there are still audience waiting for entering the performance place, it shall immediately stop checking tickets and report to the public security department at county level at the place where the performances are held. If it finds any audience hold tickets beyond the audience area or false tickets, it shall refuse them to enter the performance place and report to the public security department at the county level at the place where the performances are held.

Article 23 No one shall carry any infectious disease pathogen, and explosive, flammable, radioactive, corrosive or other dangerous substances, or illegally carry any gun, ammunition or controlled tool into the spot of the commercial performances.

The business entity of performance places shall, according to the requirements of the public security department, have security check facilities and conduct necessary security check over the audience entering the spot of the performance place. If any audience refuses the security check or has any of the said prohibited acts, the business entity of performance places is entitled to refuse his entering into the spot of performance place.

Article 24 The hosting entity of performances shall organize persons to carry out the safety and fire prevention measures during the commercial performances and maintain the order of the spot of commercial performances.

If the hosting entity of performances and the business entity of performance places find that the order at spot of commercial performances is in confusion, they shall immediately take measures and simultaneously report to the public security department under the people’s government at county level at the place where the performances are held.

Article 25 A hosting entity of performances shall not hold any commercial performances in the name of government or any governmental department.

Commercial performances shall not be titled with words such as "China (Zhongguo or Zhonghua)", "National (Quanguo)", "International" (Guoji), etc.

The advertisements of commercial performances shall be accurate and legitimate, and shall not mislead or cheat the general public.

Article 26 Commercial performances shall not:

(1)    oppose the basic principles determined by the Constitution;

(2)    endanger the unity, sovereignty，territorial integrity and security of the state, or damage the honor or interests of the state;

(3)    stir up hatred or discrimination among ethnic groups, disrespect ethnic customs or practices, hurt amicable feelings or undermine the solidarity among ethnic groups, or violate the religious policies;

(4)    disrupt social order and harm social stability;

(5)    harm the social morality or the excellent national culture and tradition;

(6)    advocate pornography, cult, superstition or violence;

(7)    insult or defame others, and infringe upon others' legitimate rights and interests;

(8)    be horrible and cruel in terms of performance methods and harmful to performers both physically and mentally;

(9)    solicit audience by making use of physical deformities or by showing physical variation of the performers; or

(10)commit any acts that are prohibited by any law or administrative regulation.

Article 27 Where a business entity of performance places or hosting entity of performances finds that the commercial performances fall within any of circumstances as mentioned in Article 26 hereof, it shall immediately take measures to stop it and simultaneously report to the public security department and competent department of culture of the people's government at county level at the place where the performances are held.

Article 28 Where the artistic performance organizations, main performers or principal programs of commercial performances are changed, the hosting entity shall timely inform the audience and make an explanation. The audience has the right to return their tickets.

During the course of performances, the hosting entity shall not suspend or terminate the performances, and actors shall not withdraw from the performances, except that the performances are unable to proceed due to any force majeure.

Article 29 No performer may cheat the audience by lip synching. No hosting entity may organize performers to conduct lip synching. No entity or individual may provide any conditions for lip synching.

The hosting entity of commercial performances shall assign special persons to supervise the performances so as to prevent the lip synching acts.

Article 30 A business entity of commercial performances shall pay taxes for its incomes from commercial performances according to law.

A hosting entity of performances shall fulfill the tax withholding obligation according to law when it pays the performers and its staff performance remuneration.

Article 31 The income from charity performances shall be entirely given to the donee entity after deducting necessary costs. No hosting entity, artistic performance organization or performer participated or staff member may obtain economic benefits from said performances.

Article 32 No entity or individual may counterfeit, alter, rent, lend, buy or sell any commercial performance license, approval document or business license. No entity or individual may counterfeit or alter any commercial performance tickets or speculative resell of any counterfeited or altered commercial performance tickets.

Chapter 4 Supervision and Administration

Article 33 People's governments and governmental departments at all levels shall not financially support or sponsor commercial performances or do so in any disguised form, or use public funds to purchase tickets of commercial performances for personal consumption, with the exception that competent departments of culture may give subsidies to the performances that reflect the ethnic characteristics and reach national level pursuant to the relevant provisions of the state.

Article 34 The competent departments of culture shall enhance the supervision over and administration of commercial performances.

The competent department of culture under people's government at county level at the place where the performances are held shall have an on-site inspection of commercial performances with participants of artistic performance organizations and individuals from foreign countries, Hong Kong SAR, Macao SAR or Taiwan, and those where a temporary stage or stand needs to be put up, and have an on-site sampling inspection of other commercial performances.

Article 35 The competent departments of culture under the people's governments at county level or above shall give full play to the role of culture law enforcement organs and may invite social volunteer supervisors to supervise commercial performances.

Any entity or individual may report any act in violation of provisions hereof by way of telephone or mobile phone short message. The competent departments of culture of the people's government at county level or above shall promulgate the informants’ hotline telephone number and ensure that the phone calls will be answered at any time.

When receiving any report from a social volunteer supervisor or the public, the competent department of culture under the people's government at county level or above shall take records, immediately go to the spot to investigate and handle issues, and publish results within 7 days upon the settlement of issues.

The competent department of culture under the people's governments at county level or above shall commend the social volunteer supervisors who have made outstanding contributions, and reward the informants whose report is confirmed upon investigation.

Article 36 For any commercial performances it approved according to the relevant laws, administrative regulations and provisions of the state, the public security department shall have an on-site inspection of the safety status of the spot where the commercial performances to be held before the performances. If any hidden danger of safety is found, commercial performances shall not start until the hidden danger of safety is eliminated.

The public security department may conduct a necessary safety check over the audience entering the spot of the commercial performances; if any audience are found to have any of the acts prohibited in the first paragraph of Article 23 hereof, he shall not be allowed to enter the spot of commercial performances until the hidden danger of safety is eliminated.

The public security department may organize the police force to help the hosting entity of performances to maintain the order of the spot of commercial performances.

Article 37 The public security department shall take measures immediately to eliminate the hidden danger of safety as soon as it receives reports regarding that there are audience waiting for entering when the number of audience has reached the verified one, or the spot of the commercial performances is in confusion.

Article 38 The personnel of the public security department and the competent department of culture who undertake the spot management and inspection tasks shall show their duty certificates when entering the spot of commercial performances.

Article 39 When conducting a supervision and inspection over commercial performances by law, the competent department of culture shall record the supervision and inspection information as well as handling results and keep these for file after have signed by the supervisors and inspectors. The general public is entitled to consult the supervision and inspection records.

Article 40 A competent department of culture, a public security department or any other relevant department, or any of their staffs shall not ask for the tickets of performances from any hosting entity of performances or business entity of performance place.

Article 41 The competent department of culture under the State Council and the competent departments of culture under people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall commend artistic performance organizations and performers who have made big contributions to hold performances in the rural areas, industrial and mining enterprises, as well as to offering free and preferential performances to children, and publicize these in various forms.

With regard to the programs that are proper to be staged in rural areas and industrial and mining enterprises, the competent department of culture under the State Council may, after has obtained the permission of the copyright owners by law, offer them to the artistic performance organizations and performers to perform in the rural areas, and industrial and mining enterprises.

When granting art awards, the competent departments of culture shall properly take into consideration of the number of performances held in the rural areas, and industrial and mining enterprises by candidates.

The local people's governments at county level or above shall support the artistic performance organizations and performers who have performances in rural areas, and industrial and mining enterprises.

Article 42 The performance trade association shall formulate self-disciplinary norms according to its rules, and give guidance to and supervise the business operations of its members to promote fair competition.

Chapter 5 Legal Liabilities

Article 43 Where any entity or person has any of the following acts, the competent department of culture under the people's government at county level shall stop its/his acts, confiscate its/his performance equipment and illegal proceeds, and impose a fine of 8-10 times of the illegal proceeds. Where there are no illegal proceeds or the illegal proceeds is less than RMB10, 000, a fine of RMB50, 000 up to RMB100, 000 shall be imposed. If any crime is constituted, its/his criminal responsibilities shall be investigated according to law:

(1)         Violating Article 7, 11 or 12 hereof to illegally set up any artistic performance organization, performance brokerage institution or illegitimately engage in business activity of commercial performances;

(2)         Violating Article 13 or 15 hereof to engage in business of commercial performances exceeding the business scope; or

(3)         Violating the first paragraph of Article 9 hereof to fail to apply to the original license issuing agency for replacing the commercial performance license after changing the business items of commercial performances.

Any entity or person that violates Article 8 or 10 hereof to illegally establish any business entity of performance places or illegitimately engage in business of commercial performances shall be banned and punished by the administration for industry and commerce. If any crime is constituted, its/his criminal responsibilities shall be investigated.

Article 44 Where any entity or person violates Article 14 or 16 hereof to hold unapproved commercial performances, the competent department of culture under the people's government at county level shall order it/he to stop the performances, confiscate the illegal proceeds and imposed a fine of 8-10 times of the illegal proceeds. Where there are no illegal proceeds or the illegal gains is less than RMB10, 000, a fine of RMB50, 000 up to RMB100, 000 shall be imposed. Under any serious circumstances, the original license issuing organ shall revoke its/his commercial performance license.

Where any entity or person violates provisions of the third paragraph of Article 17 hereof to fail to go through re-approval formalities when the hosting entity of performances, participant of artistic organizations or performers, or programs have any changes, the punishments shall be imposed in accordance with the preceding paragraph. Where any entity or person fails to go through the re-approval formalities when the name, date, place or number of performances have any changes, the competent department of culture under the people's government at county level shall order it/he to make corrections, give a warning and may impose a fine of RMB30, 000 or less.

Where a business entity of performance places offers place for any unapproved commercial performances, the competent department of culture under the people's government at county level shall order it to make corrections, confiscate its illegal proceeds and impose a fine of 3-5 times of the illegal proceeds. Where there are no illegal proceeds or the illegal proceeds is less than RMB10, 000, a fine of RMB30,000 up to RMB50, 000 shall be imposed.

Article 45 Where any entity or person violates Article 32 hereof to counterfeit, alter, lease, lend, buy or sell any commercial performance license or document, or to obtain any commercial performance license or approval document by illegal means, the competent department of culture under the people's government at county level shall confiscate the illegal proceeds and impose a fine of 8-10 times of the illegal proceeds. Where there are no illegal proceeds or the illegal proceeds is less than RMB10, 000, a fine of RMB50, 000 up to RMB100, 000 shall be imposed. The commercial performance license or document formerly obtained by the violator shall be canceled or revoked. If any crime is constituted, criminal responsibilities shall be investigated.

Article 46 Where any commercial performances are in any of the prohibited circumstances provided in Article 26 hereof, the competent department of culture under the people's government at county level shall order the violator to stop the performances, confiscate the illegal proceeds and impose a fine of 8-10 times of the illegal proceeds. Where there are no illegal proceeds or the illegal proceeds is less than RMB10, 000, a fine of RMB50, 000 up to RMB100, 000 shall be imposed. Under any serious circumstances, the original license issuing organ shall revoke its commercial performance license. Where the public security administration provisions are violated, the public security department shall punish the violator in accordance with the law. If any crime is constituted, criminal responsibilities shall be investigated.

Where a business entity of performance places or a hosting entity of performances find commercial performances are in any of the prohibited circumstances in Article 26 hereof but do not take measures to stop them, the competent department of culture or the public security department under the people's government at county level shall, according to their statutory functions, give it a warning and impose a fine of RMB50,000 up to RMB100, 000. Where it fails to report according to Article 27 hereof, the competent department of culture or the public security department under the people's government at county level shall give it a warning according to their statutory functions and fine it RMB5, 000 up to RMB10, 000.

Article 47 Where any hosting entity of performances, artistic performance organization or performer has any of the following acts shall be announced to the general public by the competent department of culture under the State Council or the competent departments of culture under the people's government of provinces, autonomous regions or municipalities directly under the Central Government. Where the hosting entity of performances or artistic performance organization is announced for 2 times within 2 years, its commercial performance license shall be revoked by the original license issuing agency. Where the individual performer is announced for 2 times within 2 years, his business license shall be revoked by the administration for industry and commerce:

(1)         Suspending, terminating or withdrawing from the performances not due to any force majeure;

(2)         Failing to timely inform the audience about any changes of artistic performance organizations, main performers or main contents of programs;

(3)         Cheating the audience by lip synching; or

(4)         Providing conditions for the performers to conduct lip synching.

Where there are any acts provided in Items (1) through (3) of the preceding paragraph hereof, the audience is entitled to require the hosting entity of performances to compensate for their losses in accordance with the provisions on the protection of the rights and interests of consumers after the performance. The hosting entity of performances may recover its losses from the artistic performance organizations or performers that shall bear the responsibilities according to law.

Where there are any acts provided in Items (1) through (3) of the first paragraph hereof, the competent department of culture under the people's government at county level shall fine the violator RMB50, 000 up to RMB100, 000. Where a violator has any act provided in Item (4) of the first paragraph hereof, a fine of RMB5, 000 up to RMB10, 000 shall be imposed by the competent department of culture under the people's government at county level.

Article 48 Where any entity or person holds commercial performances in the name of government or governmental departments or titled with words such as "China (Zhongguo or Zhonghua)", "National (Quanguo)", or "International" (Guoji), the competent department of culture under the people's government at county level shall order it/he to make corrections, confiscate its/his illegal proceeds and impose a fine of 3-5 times of the illegal proceeds concurrently. Where there are no illegal proceeds or the illegal proceeds is less than RMB10, 000, a fine of RMB30, 000 up to RMB50,000 shall be imposed. Where it/he refuses to make corrections or has caused any serious consequences, the original license issuing agency shall revoke the commercial performance license.

Where the advertisement of a commercial performance contains any misleading, deceptive or illegal contents, the administration for industry and commerce shall order the violator to stop issuing such advertisements and impose a punishment according to law.

Article 49 Where a hosting entity of performances or its legal representative, main principals or any other directly liable persons obtain any economic benefits from any charity performances, the competent department of culture under the people's government at county level or above shall, according to its authorities, order it/him to refund the money to the donee entity. If any crime is constituted, criminal responsibilities shall be investigated according to law. Where no crime is constituted yet, the competent department of culture under the people's government at county level or above shall, according to its authorities, impose a fine of 3-5 times of the illegal proceeds, and the competent department of culture under the State Council or the competent departments of culture of the people's governments of provinces, autonomous regions or municipalities directly under the Central Government shall announce its/his name to the general public, or even the original license issuing agency may revoke the commercial performance license of the hosting entity.

Where an artistic organization, performer or staff member obtains any economic benefits from any charity performances, the competent department of culture under the people's government at county level or above shall, according to its authorities, order it/him to refund the money to the donee entity.

Article 50 Where any entity or person violates the first paragraph of Article 9 hereof that fail to apply to the original license issuing agency for replacing its/his commercial performance license by a new one after has changed the name, domicile, legal person or main principal, the competent department of culture under the people's government at county level shall order it/him to make corrections, give a warning and impose a fine of RMB10, 000 up to RMB30, 000.

Where any entity or person violates the second paragraph of Article 8, the second paragraph of Article 9 or the second paragraph of Article 10 hereof that does not go through filing formalities, the competent department of culture under the people's government at county level shall order it/him to make corrections, give a warning and impose a fine of RMB5, 000 up to RMB10, 000.

Article 51 Any entity or person that has any of the following acts shall be punished by the public security department or the public security and fire control organ according to their statutory functions according to law. Where any crime is constituted, criminal responsibilities shall be investigated according to law:

(1)         Violating the relevant provisions hereof on safety and fire prevention administration; or

(2)         Counterfeiting or altering commercial performance tickets, or reselling counterfeited or altered tickets speculatively.

Where a hosting entity of performances produces or sells more commercial performance tickets than that approved or those beyond the audience area, the public security department under the people's government at county level or above shall, according to its authorities, order it to make corrections, confiscate its illegal proceeds and impose a fine of 3-5 times of the illegal proceeds. Where there are no illegal proceeds or the illegal proceeds is less than RMB10, 000, a fine of RMB30, 000 up to RMB50, 000 shall be imposed. Where any severe consequences are caused, the original license issuing agency shall revoke its commercial performance license. If any crime is constituted, criminal responsibilities shall be investigated according to law.

Article 52 Any artistic performance organization or performance brokerage institution, whose commercial performance license is revoked by the competent department of culture due to its violation of provisions hereof, shall go through alteration or cancellation formalities at the administration for industry and commerce. If it fails to do so within the time limit, its business license shall be revoked.

Where a business entity of performance place, self-employed performance broker or self-employed actor violates provisions hereof, and is under any serious circumstances, the competent department of culture under the people's government at county level or above shall, according to its authorities, order it/him to stop the business activities of commercial performances and notify the administration for industry and commerce, which shall revoke its business license. Where a business entity of performance places is engaged in other businesses, the administration for industry and commerce shall order it to handle the alterative registration; if it fails to do so within time limit, its business license shall be revoked.

Article 53 Where any entity or person is revoked of its/his commercial performance license by the competent department of culture, or its/his business license by the administration for industry and commerce or is ordered to alter the registration due to its/his violation of provisions hereof, if the violator is an entity, its legal representative or main principals shall not take up the position of the legal representative or main principals of any artistic performance organization, performance brokerage institution or business entity of performance places within 5 years; if the violator is an individual and self-employed performer, he shall not engage in commercial performances within 1 year; if the violator is a self-employed performance broker, he shall not engage in the activities such as intermediary or agency of commercial performances within 5 years.

Where any entity or person is revoked of the commercial license by the competent department of culture, or the business license by the administration for industry and commerce or is ordered to alter the registration due to its/his the commercial performances are in any of the prohibited circumstances provided in Article 26 hereof, it/he shall not engage in activities such as intermediary, agency and brokerage any longer.

Where any entity or person has been subjected to 2 administrative punishments within 2 years due to its/his violation of provisions hereof, and has any illegal acts that shall be subject to punishment under provisions hereof, it/he shall be given a heavier punishment.

Article 54 Where any people's governments or governmental departments illegally offer financial support or sponsor any commercial performances or does so in any disguised form, or use public fund to buy commercial performance tickets for personal consumption, they shall be ordered to make corrections in accordance with the administrative regulations on the punishments and sanctions of illegal acts against public finance. The relevant entity shall be given a warning or circulated a notice for criticism. The directly liable person-in-charge and other directly liable persons shall be given a sanction of serous offence; if the circumstances are serious, they shall be degraded or dismissed from their posts; if the circumstances are extremely serious, they shall be discharged.

Article 55 Any staff member of a competent department of culture, public security department or administration for industry and commerce who abuses his power, neglects his duties, pursues private benefits at the public cost or fails to perform his duties pursuant to provisions hereof, shall be given an administrative sanction according to law. If any crime is constituted, criminal responsibilities shall be investigated according to law.

Chapter 6 Supplementary Provisions

Article 56 The people's governments of provinces, autonomous regions or municipalities directly under the Central Government may formulate specific measures for the administration of commercial performances of self-employed folk performers.

Article 57 The Regulation shall come into force as of September 1, 2005. The Regulation on the Administration of Commercial Performances promulgated by the State Council on August 11, 1997 shall be simultaneously abolished.

Editor (Compiler): Shanghai International lawyers