Xunlei: Chinese File Sharing Platform Struggles with Piracy
Xunlei, a Chinese networking technology company which owns the popular file sharing platform, agreed to implement a comprehensive system of protection of copyright to its audio and video content. Management of the company has concluded an agreement with the Association of American film companies MPAA about the joint fight against online piracy and unauthorized downloading of illegal content.
The main aim of the agreement between the Association of American film companies (MPAA) and the Chinese Xunlei Networking Technology will strengthen the online channels of legal access to viewing movies and TV series. As noted in the official statement of the MPAA, with the conclusion of an agreement with China's largest peer to peer network for the comprehensive protection of copyrights (Content Protection Agreement – CPA), online trekkers users will be notified about how to gain access to licensed versions of movies and TV shows, and illegal copies will be simply deleted.
Chinese Xunlei file sharing has been actively developed since the end of 2006, and in 2007, has already attracted the attention of the Internet giant like Google, which has invested in developing a network of nearly $ 5 million., Bought a 4% stake in the company.
In 2014, the Xunlei reached a valuation of $912 million, followed by an A-series investment from Xiaomi at $200 million USD.
Xunlei Ltd. (XNET) filed with the Commission on Securities and Exchange Commission registration documents for its initial public offering of American Depositary Shares (ADS). Estimated maximum asking price is $ 100 million. The company is planning a listing under the symbol XNET.
In 2008, a class action lawsuit by six Hollywood studios. The essence of the claim was that Xunlei was convicted of illegally distributing pirated movies – in the networks of the company are available for free download hundreds of movies Hollywood majors.
As part of the new anti-piracy agreement, the company Xunlei Networking Technology is committed to establish the technological content recognition system that is guaranteed to ensure that copyrighted materials MPAA members available through file sharing services, properly licensed.
Steven Fabrizio, senior executive vice president and global MPAA general counsel, said the importance of the agreements reached:
With the world's largest number of Internet users, the Chinese market has enormous potential for content creators who want to make their projects available online for hundreds of millions of consumers. This agreement is an important step forward in implementing the MPAA mission in this huge market.
Later Xunlei and MPAA will cooperate to ensure that the content protection measures will remain effective and also carry out an informative warning for users of the damage caused by illegal downloads and piracy of the global film industry.