This week, a Chinese DVD company was found guilty of violating the copyrights of three major US film studios.

The Shanghai First Intermediate People's Court on Tuesday ruled that Shanghai Leying Audio and Video Limited should stop selling pirated DVDs and pay 25,000 yuan (US$3,230) to three US film studios: Walt Disney, Warner Bros., and New Line.

The film studios took Shanghai Leying to court for producing and selling DVDs of smash hits such as The Lord of the Rings: The Fellowship of the Ring and The Incredibles without authorization.

The two defendants failed to appear at Tuesday's court hearing, and were therefore tried in absentia.

Disney will receive 12,000 yuan (US$1,550) in compensation, New Line 7,000 yuan (US$904), and Warner Bros. 6,000 yuan (US$775). 

(Xinhua News Agency March 8, 2007)