UPDATE: MPAA Chairman Chris Dodd declared Tuesday evening that Hollywood’s revenue beef with the Chinese government has been settled in favor of the studios: “The MPAA understands that the China Film Group stopped payments owed to MPAA studios in China pending resolution of the application of a new value-added tax (VAT) due to be implemented nationwide as of August 1. We are pleased to hear that the Chinese government has addressed the matter and all money due will be paid in full. It is our understanding that the payment process has recommenced. The U.S. and Chinese film industries enjoy a close and productive relationship and the MPAA is grateful to our counterpart, the State Administration of Press, Publication, Radio, Film and Television (SAPPRFT) for their commitment in resolving this matter favorably. We look forward to further strengthening our ties with SAPPRFT as the Chinese screen community continues its path to becoming a global powerhouse in the international entertainment market.”
PREVIOUS: In the battle over box office receipts between the studios and China’s government with hundreds of millions at stake, Hollywood appears to have won. That’s per WSJ, which is reporting that the MPAA has successfully settled an ongoing dispute over a value-added tax China-owned distrib China Film Group wanted to charge on box office returns. The fees would have cost studios including Fox, Paramount, Sony and WB a portion of their 25% revenue share. A spokesperson for the MPAA refused comment on the matter.