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The complex overseas legal systems, which are vastly different from those of China, are among the challenges that enterprises from China expanding into overseas markets need to address. For Chinese cultural enterprises seeking to explore overseas markets, in the process of business development, apart from optimization of cross-border commercial contracts and intellectual property rights protection, they also need to cope with a wide spectrum of legal issues covering content examination under different cultural customs, film distribution, entertainment activity licensing, protection of the right of reputation and the right of privacy, industrial chain tax optimization, audiovisual product production, investment in event organization and other aspects. A law firm that is well acquainted with the laws and regulations of multiple jurisdictions around the world and has local partners across the globe can provide highly valuable services for enterprises.

First, in most regions across the globe, prior to the screening, sale, rental or dissemination of a film, an application for film classification shall generally be submitted to the local cultural regulatory authority first. Where necessary, the regulatory authority may also require the film distributor to revise and edit specific contents. When carrying out classification and review, regulatory authorities generally focus on assessing contents involving violence, sex, drugs and other contents unsuitable for minors, as well as contents inconsistent with local cultural customs and religious norms. The effect of film classification also varies in different regions. In some regions, the age classification for film viewers is legally mandatory, while in other regions it is only of an advisory nature, which may be a factor that cultural enterprises need to consider when making business decisions. In addition, it shall also be noted that the film regulatory authorities in some regions are not non-profit administrative organs, and may charge fees for review in accordance with time or other criteria.

In the Internet era, the dissemination and promotion of online content may also be subject to administrative and legal supervision. Various regulatory authorities may censor films disseminated online, and where necessary, require the filtering or removal of specific content either directly or through judicial channels. To protect their own commercial interests, enterprises going global shall also pay attention to the dissemination of improper online speech and content. When they find that their rights such as copyright, right of reputation and right of privacy are infringed upon, they may directly contact the corresponding Internet service providers to request deletion of the relevant content, or take judicial actions or file a report with the regulatory authorities when necessary.

Generally, to distribute a film in a region, cooperation with a local experienced professional film distributor is required. Prior to the commencement of cooperation, a detailed due diligence review shall be conducted on the distributor to ascertain its past film distribution experience and business reputation. The film distribution agreement signed with the distributor shall set out explicit and detailed provisions on the specific scope of film distribution (including region, term, language, method, etc.), consideration (including amount, revenue distribution, payment method, payment term, etc.), sublicensing authorization, online television broadcasting, retail sales and other relevant matters. A professional contract will also give full consideration to and stipulate such contents as representations and warranties of both parties, liability for breach of contract, dispute resolution, as well as modification and termination of the contract. Enterprises may seek cooperation with professional legal teams specializing in the entertainment industry and their overseas partners, to optimize the relevant clauses in accordance with their demands and the laws and regulations of the corresponding countries.

China's cultural enterprises may, in addition to distributing and releasing films overseas, also consider investing in the production of films and other entertainment products abroad for promotion and sale in the domestic or global markets. This can be achieved through such methods as joint venture and cooperation with overseas cultural enterprises or the establishment of wholly owned overseas entities. Enterprises shall formulate detailed investment plans in advance, optimize their strategic layout through approaches including offshore overseas investment, ensure compliance with the laws and regulations of the corresponding investment destinations in multiple aspects such as taxation, intellectual property rights and labor, and protect their legitimate interests through fully detailed and sound commercial contracts during cooperation negotiations to mitigate any potential disputes. Finally, the holding of on-site entertainment events overseas can not only directly generate commercial benefits for enterprises, but also facilitate the promotion of relevant works and products. However, such events are often subject to the supervision of detailed legal and administrative procedures, and the organizer shall submit an application to the regulatory authority after completing adequate preparations in advance.