The Significance of the Issue in Greater China

Wang ba translates as "Net bar." But the majority of them qualify neither as cafes nor bars. You won't find espresso machines or beer on tap. You will, however, see plenty of ashtrays and breathe in lots of smoke. Some facilities are so primitive, the only bathroom is a bucket against a wall.

Like those at the wang ba, most owners skirt the law, operating without a license and serving minors. China permits people younger than 18 to patronize licensed wang bas on weekends and holidays. Those younger than 14 can enter only with an adult.

Some say Beijing is responsible for promoting illicit wang bas. The Communist government is so afraid of the Internet's power to spread antisocial activities, it has tried to control Internet cafes by making it nearly impossible to get a license. Instead, the move has had the opposite effect.

The illegal market has flourished, with fewer safety precautions. Authorities announced that all the 2,400 internet cafes in Beijing - only 10 percent of which are licensed. Illegal operators thrive-they give young Web users what they want: 24-hour service for as little as 25 cents an hour, cigarettes, even cots to crash on. This makes for cheap entertainment, even in China. Youngsters in school uniforms are the illicit cafes main client. Periodic crackdowns such as the one underway have only made the cafes more popular.

Lanjisu Internet Cafe Fire Shocks China
In June 2002, Lanjisu Internet Caf?, a Beijing cyber cafe, caught fire. The boys, aged 13 and 14, had confessed to police they used gasoline to set the cafe ablaze to take revenge on staff who would not let them use computers there. The 24 people who died in the blaze are all students at nearby universities and schools.

When the fire broke out, they were trapped inside the unlicensed second-story cafe, which had bars across its windows and just one exit, which was locked. Another 13 people were injured, many suffering terrible burns.

All major cities in China moved quickly to tighten controls on Internet cafes. Beijing, Shanghai and Tianjin municipalities, Guangdong and Shandong provinces and the Hong Kong Special Administrative Region(SAR) swiftly announced new measures for their Internet cafes, including limiting total numbers, shutting down all unlicensed ones, improving layout and amending relevant laws and regulations. Among them, for instance, Beijing municipal government called on citizens to expose those "black Internet cafes" to the government. Tianjin required all its cyber cafes to use fire-proof materials indoors and cafe staff to be given fire prevention training.

How Safety is Ensured in Hong Kong

Background

In Hong Kong, Internet cafes became very popular in recent years. According to Government's estimation, there are about 300 Internet cafes in Hong Kong as at the end of last year. The industry itself estimated that over 1000 Internet cafes are now operating. Internet cafes provide Internet access services mainly; youth persons are their major customers. A survey showed that over 60% of Internet cafe's customers aged only between 13 to 14. (Survey done by The Boy's and Girl's Club Association of Hong Kong between December 2001 to January 2002) Other survey also showed that 24% of primary four to primary six students did go to Internet cafe. (Survey done by Holy Carpenter Church Community Center between December 2002 to January 2003)

Young persons like gather together in one Internet cafe to play online games. In this way, Internet cafes in Hong Kong are quite similar with Amusement Game Centre, but of course, the regulation policy of the latter one is much more tightened.

The charges of Internet cafes go down sharply because of keen competition. Average charges per hour at Internet cafes is around $7-9, compared with $20-30 per hour at the very beginning. Further discount is given after midnight.

Safety Concern

In Hong Kong, there is no specific legislation governs the establishment or operation of Internet cafes. Establishing an Internet cafe requires only a business registration. A food license is also required if the Internet cafe wants to provide soft drinks and refreshment Since Internet cafes are often operate in residential areas, they need to meet the safety standards applicable to the building it is in.

General public concerns in Hong Kong over Internet cafes focus more on the area of fire safety and youth protection. It has been criticized that the fire risk of Internet cafes in Hong Kong is especially high. Without special legislation, Internet cafes in Hong Kong need only to met general legislation related to building safety, fire safety and safety of electrical installation. Guidelines have bee prescribed by the Building Ordinance, the Electricity Ordinance, the Fire Services Ordinance and the Code of Practice for Minimum Fire Services Installations and Equipment issued by the Department of Fire Services.

Since Internet cafes in Hong Kong are always operating in residential areas, mostly are older buildings, the lack of proper electrical wiring for heavy usage and lack of smoking regulations lead to a higher risk of fire hazard. Public concerns grew over the risk of fire in Internet cafes in Hong Kong since a major fire broke out at Lan Ji Su Internet Cafe in Beijing in June 2002. The blaze took twenty-four lives and shocked many Hong Kong people.

Government recognized that Internet safes do pose a high fire risk. The Acting Secretary for Home Affairs, Michael Suen, told the Legislative Council on July 10, 2002 that "Internet cafes have to comply with the existing fire safety requirements applicable to the buildings in which they are located. The Fire Services Department regularly inspects the existing 200-plus Internet cafes. In view of the disaster in the Beijing Internet cafes in May, we have subsequently requested the Fire Services Department to conduct another inspection on the fire safety installations of the Internet cafes. Slight obstructions to fire safety installations such as blocking of sprinkler head nozzles by ornaments and of hose reels by miscellaneous items were found in only eighteen of them. There was no contravention of fire safety regulations in the other Internet cafes. The Fire Services Department has issued Fire Hazard Abatement Notices or warning letters to the persons-in-charge of these eighteen Internet cafes requiring them to rectify the irregularities within a specified period."(The Acting Secretary for Home Affairs, Mr. Michael Suen's reply to Hon Tsang Yuk Sing in the Legislative Council on July 10, 2002.) He said, "The Home Affairs Bureau is now considering the need to regulate Internet cafes by legislation. In formulating relevant policies, the Administration has totake into account various factors such as the policy to promote the development and wider application of information technology, prevention of the operation of such establishments from making negative impacts on youngsters, as well as building and fire safety issues." (The Acting Secretary for Home Affairs, Mr. Michael Suen's reply to Hon Tsang Yuk Sing in the Legislative Council on July 10, 2002.)

With regard to the youth protection, it is quite similar to those in PRC, including restricted access to pornographic material, Internet gambling, drugs and Triad activities. In Hong Kong, the content of computer games falls within the jurisdiction of the Control of Obscene and Indecent Artless Ordinance, with the Police and the Television and Entertainment Licensing Authority (TELA) being the enforcing government agencies.

Since there are no restrictions on age and business hours, some Internet cafes are used to cover triad activities especially sex business. Many newspapers reported that some Internet cafes have "cyber hostess" whom jobs are helping customer to browse web sites but actually providing sex business. Ming Pao reported on November 13, 2002, a girl aged only 15 was force to do sex business at an Internet cafe in Jordan, so as to repay debt. (Ming Pao, November 13, 2002)

Legislative Efforts

In light of public concerns on the safety of Internet cafes, on July 12, 2002, the Legislative Council Panel on Home Affairs (the "Legislative Panel") issued a paper called the "Way Forward for Internet Computer Services Centers and Amusement Games Centers" with the intention of seeking opinions on possible regulatory options for Internet cafes. (Way Forward for Internet Computer Services Centers and Amusement Games Centers)

This paper provides a background summary on Internet Computer Services Centers and seeks views on the various possible options for the regulation of these centers. It stresses at the very beginning that the increased use of the Internet and growing popularity of Internet surfing or games have led to a proliferation of Internet Computer Services Centers and Amusement Games Centers (i.e. Internet cafes) in Hong Kong. But what Government policy would do is not to impose unnecessary control on Internet use and to minimize hurdles against setting up business while regulating the Internet cafes. Venues providing Internet services with less than ten computers are not included in the proposed regulation policy. The paper lays out three options:

Option A - No change
This option contemplates no change to the current legislation apart from the fact that the Legislative Panel has considered channeling all business registration records relating to the establishment of Internet cafes to the relevant enforcement departments for follow-up. However, it was not considered feasible for the Business Registration Office to channel such records due to the minimal information provided in these records, which in any case can be used for tax purposes only.

Legislative Efforts

Option B - Regulate as amusement games centers
In terms of computer games, an Internet cafe is no different from a conventional amusement games center. As such, the Legislative Panel suggests that Internet cafes could be licensed and regulated in the same way as amusement games centers. However, the current Amusement Games Centers Ordinance requires all games to be pre-approved by TELA. The Legislative Panel points out that since games can be downloaded from the Internet, this pre-approval requirement would be impractical both on the operator's side and the TELA side. Also, under the current regime, the playing of video game machines would have to be the sole business of these centers. This requirement is too restrictive because many Internet cafes provide other services such as refreshments, comic books and magazines. The Legislative Panel indicates that it is studying whether to relax some of the current licensing conditions and administrative practices for amusement games centers in order to co-regulate the Internet cafes. At the time this article was written, no changes had been announced.

Option C - Notification system (which is largely based on Korean experience)
Under this regime, the operator of an Internet cafe would be required by law to give notice of its establishment to the relevant authority, which would in turn inform the enforcement departments such as the Buildings Department and the Fire Services Department to conduct suitable inspections. In addition, there would be some specific conditions attached to the notification acknowledgement such as public safety, restricted hours for youth, "brightly lit" premises, and installation of devices to screen violent, pornographic or gambling Web sites. Failure to comply with these conditions could result in suspension or termination of business.

Beside of these three options, it is suggested that young persons without going with parent are not allowed to stay at Internet cafes after 10pm in order to avoid triad activities. Moreover, Internet cafes are recommended to install filtering software so as to block sex and gambling web sites.

Legislative Preference

The Legislative Panel indicates that Option C is its preferred option because it addresses the public's concerns without imposing unnecessary control over the use of the Internet or hurdles for setting up business. The Internet cafe industry itself also support Option C. A survey showed that out of 95 Internet cafe operators, 60% support Option C, and 80% respondents objected imposing business time restriction. (Survey done by Democratic Alliance For Betterment Of Hong Kong between July to August, 2002.)

Secretary of Home Affairs, Patrick Ho Chi-ping, visited several Internet cafes last summer, he mentioned that government should not impose heavy restrictions on Internet cafes operation repeatedly.

Whether Option C will be adopted is still an open question, as the consulting process has not completed. It is hope that the government can finish all the legislative procedures and put the regulation effective in the first half of 2003.

How Safety is Ensured in US

Background

Internet.com reports that the latest Harris Interactive poll reflects Internet usage at 66 percent among adults. This figure, based on a Harris Poll telephone survey of 2,038 adults in February and March of 2002, represents an increase of 10 million from November 2001 (127 million to 137 million). Of the two-thirds of online adult Americans, 55 percent access the Internet from home, while 30 percent surf at work. Almost one-in-five adults go online from a school, library, internet cafe or other location, and some people are online from two or more places.

Unlike China or even Hong Kong, internet cafes problem are less related to youth or safety. Such internet cafes - stores that mainly provide food and drink along with Net access - are a convenient boon to many. They are definitely serving tourists or others without home computers right the spot. Generally speaking, they will only spend a limited span of time in Net cafes with maybe $1 buys about 15 minutes of high-speed internet access.

Latest development is while schools in the US have been struggling for the past ten years to tap into the Internet they have been confronted with the problem of inadequate building inventories: aging facilities, a lack of technology infrastructure, inflexible buildings, outdated systems and overcrowded classrooms. School districts are now exploring flexible venues such as "cybercommons" and "cybercafes," offering students options to gather informally, access data networks and the Internet, and work independently or in small groups.

Regulating the Internet Cafes

Of the three places, the US has most comprehensive and sophisticated regulations on internet access. The US regulation is geared more toward the safety of computer networks and national security. However, with no specific ordinance and regulation concerning the safety of internet cafes, public venues of internet services are relatively not the prime concern of government.

Even so, much like public pay phones, internet cafe terminals are available for use by anyone - all without registering a name or other information with any service provider. And with hundreds, perhaps thousands of other patrons visiting a particular cafe on any particular day, criminal users like terrorists can easily "blend in" with the crowd.

What's more, practically anyone can set up a store with computers and offer Internet access from their so-called internet cafe - and often with their own "rules." For example, some Internet cafes may require photo identification before patrons log on, but others won't have such requirements.

Some countries - most notably China and India - have or are trying to mandate such requirements in local internet cafes. But the global community of Internet cafes itself remains largely a cottage industry that is neither tracked or regulated. And it's unlikely to change anytime soon - especially in Western countries.

How Safety is Ensured in Malaysia

Background

"e-gambling"has become the newly concern upon the regulation of internet cafes. The issue came to light in Malaysia when a schoolboy from Johor fell prey to online gambling and accrued heftly debts. It was reported that internet cafes had been openly approached by"dealers"offering to set up e-gambling at their premises.

Legislative initiatives

In 2000, Deputy Home Minister Ong Tee Keat was reported to have said that a set of guidelines would be introduced to monitor "e-gambling" at cyber cafes. He said online gamblers were taking advantage of "loopholes" and Malaysia's present laws were inadequate to cover this area. Actually, there is still argument on the proposal that the authorities charge a tax on profits of internet cafe operators and investors who are offering online gambling and impose a minimum age requirement could prove effective in checking the problem.

How Safety is Ensured in India

Background

The committee which set up by the Mumbai high court to advise on regulating access of minors to porn on the web, came in response to a public interest litigation which resulted from a letter, two K.C. College students had sent the court, drawing attention to a porn site.

Legislative efforts

Among other restrictions, minors visiting internet cafes will not be allowed to use computers in cublics or behind partitions, and cafes will have to more computers so that the screens are visible to passers-by. In addition to that, Deputy Police Commissioner, approved licensing application forms for cyber cafes, suggested that every cyber cafe be required to maintain a log of users with valid photo-identity cards.

Regulatory Frameworks in China

The main regulatory bodies in the PRC such as the Ministry of Public Security (MPS), the Ministry of Information Industry (MII), the Ministry of Culture (MOC), and the State General Administration of Industry and Commerce (SAIC) have kept close control over Internet cafes. On April 3, 2001, the four ministries jointly issued the Measures on Administration of Business Establishments that Provide Internet Services ("Internet Cafe Measures") setting forth for the first time a unified regulatory system over Internet cafes that coordinates administrative efforts among the different regulatory bodies.


Rationale for Regulation and Control

The MOC is in charge of Internet bars and relevant service providers who trade network news, videos, Internet games and other net-based entertainments through the cyber-technology. Deputy director of the cultural industry division of the MOC, had hinted that currently some Internet cafes illegally traded in contraband videos, and auctioned and sold pirated artistic works. Some Internet cafes offered on-line games featuring pornography, gambling, violence and fetishism, and some other unlicensed premises even allowed in teenagers, which totally violated Chinese law.

Like youngsters around the globe, what they really crave is computer games. Lots of computer games. Wang ba function as a giant video arcade. In most of illegal bas, players paid less than $2 a night for all the games they want. Even those who have their own terminals find the cafes cheaper, faster and infinitely more fun than signing on from home or school, where parents and teachers may be around to supervise.

To solve the problems of overlapping and often conflicting requirements that made the successful rate of issuing business licenses low, the State Council issued the Regulation on Administration of Business Establishments that Provide Internet Services (" Internet Cafe Regulation"), which took effect November 15, 2002, and superseded the Internet Cafe Measures.

Law and Regulations

The main provisions of the Internet Cafe Regulation are summarized as follows:

Scope of Applicability
The Regulation governs businesses that provide Internet services to the public through computers or other electronic devices. These may be Internet cafes, computer rooms or other types of establishments. The Regulation, however, does not apply to schools or libraries that provide Internet services to specific user groups for the purpose of obtaining materials and information.

Allocation of Regulatory Powers
The superseded Internet Cafe Measures served only to coordinate the regulatory efforts among the four issuing authorities, but it did not resolve the overlapping (and often conflicting) requirements imposed by those ministries. This situation made it difficult for Internet cafe operators to be sure they were in compliance.

The Regulation is promulgated by the State Council, so as a matter of legislative seniority the Regulation prevails over the previous conflicting rules and orders issued by different ministries.

The Regulation provides that the culture administration authorities (i.e., MOC and its local counterparts) are responsible for examining and approving the establishment of Internet cafes, as well as supervising and administering the business activities of Internet cafes. The public security authorities are responsible for supervising and administering the information network safety, public security and fire safety of Internet cafes. The administration for industry and commerce authorities is responsible for administering the business registration of Internet cafes.

The Regulation greatly limits the power of the communications authorities (i.e., MII and its local counterparts), who had extensive registration and approval power over Internet cafes under the Internet Cafe Measures. In fact, the Regulation does not provide any specific responsibilities for the communication authorities. The Regulation prohibits government departments and officials from engaging in Internet cafe businesses.

Establishment of an Internet Cafe
An Internet cafe must be operated by an enterprise entity. An individual is not allowed to operate an Internet cafe. Before an enterprise entity can be established for the purpose of operating an Internet cafe, an application must be filed with the culture administration authority. That authority will examine and determine whether the application satisfies its minimum requirements for area and for the quantity of computers and other accessory equipment.

Upon the culture administration authority's preliminary approval, the application will be further examined by the relevant public security authority, which will carry out an on-site examination for information network safety and fire safety. With the public security authority's approval, the culture administration authority will perform a final examination on the application before it issues to the applicant a Network Culture Business License.

Once the applicant receives the Network Culture Business License, it can apply for a business license with the relevant administration for industry and commerce authority. Only then can it commence business operations. The Network Culture Business License and the business license must be displayed in a conspicuous place at any Internet cafe.

Any changes to an Internet cafe's business address, in the number of computers used by an Internet cafe or other substantial changes require approval by the Internet cafe's original examination and approval authorities.

Business Operation of an Internet Cafe

• Content restriction
• An Internet cafe operator and its customers cannot use the Internet cafe to produce, download, duplicate, review, disseminate or otherwise use prohibited information, the scope of which in general conforms to the scope of the information that is prohibited from being produced, duplicated, publicized or disseminated through a telecommunications network under Article 57 of the PRC Telecommunication Regulation. One exception is that prohibited information under the Internet Cafe Regulation additionally includes information that is detrimental to social ethics and the national cultural tradition.
• Network safety
• An Internet cafe operator and its customers are also prohibited from engaging in activities that are detrimental to information network safety,4/ such as intentional production and dissemination of a computer virus or other destructive programs, and unlawful invasion into a computer information system and destruction of a computer information system's functionality, data, and application program.
• An Internet cafe operator must obtain an Internet connection from licensed Internet connection service providers (ISPs). The computers provided for customer use must be connected to the Internet via a local network only, not directly linked to the Internet. An Internet cafe operator must check and register a customer's identification and keep a record of Internet use. Such registration and records must be kept for no less than 60 days and must be provided upon request to the culture administration authority and the public security authority.
• Gambling prohibited
• An Internet cafe is not allowed to provide non-network computer game services.
• An Internet cafe operator and its customers must not use a network game or other methods to engage in gambling or similar activities.
• Youth protection
• An Internet cafe is not allowed to operate in residential buildings or within 200 meters of primary schools or middle schools. Minors under the age of 18 are not allowed to enter Internet cafes, and signs prohibiting the entrance of minors must be displayed in the entrance of Internet cafes.
• Public security and fire safety
• An Internet cafe's business hours are restricted to the period between 8:00 a.m. and midnight. An Internet cafe operator must restrict smoking and the use of fire within the business premises, and must display signs to that effect. During business hours, the entrance, other doors, and windows of the premises of an Internet cafe must not be blocked.
• Penalties
• The Regulation provides various penalties that different authorities may impose when Internet cafe operators or customers violate the Regulation. The administrative fines range from RMB5,000 to RMB50,000, and criminal liabilities may be incurred in particularly severe situations.

Suggested Solutions

Within hours of the Lanjisu internet cafe's blaze in 2002, authorities announced that all the 2,400 internet cafes in Beijing - only 10 percent of which are licensed - would be shut down for pending investigation. PRC regulation which applied to internet cafes are undoubtedly loose in the sense that unauthorized internet cafes could be operated right around the corner. The businesses have sprouted across China in recent years extremely due to growing demand for internet and computer access. Tighter and effective control with reasonable regulation is the only means to implement in order to regulate the businesses without ban. Certain suggested solutions are recommended as follows:

1. It is unclear whether or not the Regulation applies to complimentary Internet access provided by cafes and restaurants to their customers. Authorities need to further define or specify the scope of applicability to the venues provide the minimum extent of internet services ( for instance, how would bars, cafes or restaurants provide complimentary internet access).
2. The new issue of "Internet Cafe Regulation" laid down the measures to protect the youth from the influence of internet cafes. However, only the government check is not enough to block all prohibited sites from users. Compulsory installation of protective software can be one of the considerations to strengthen the initiatives. Besides, authority can similarly require operators all internet cafes to use fire-proof materials indoors and cafe staff to be given fire prevention training.
3. Another new provision to protect the youth is to restrict minors under the age of 18 entering internet cafes. It might not be the most thoughtful measures in the sense that it will retard the youngsters to grasp knowledge via internet at the earliest year. Rather than that, it can be amended by adding the condition that those under 18 years of age can go to internet cafes only with teachers and stay online for three to five hours at most.
4. According to the regulation, illegal internet cafes will be punished and legal internet cafes that fail to meet important regulations will have their licenses revoked. The legal duties are only claimed on operators or customers. It would be more effective if the responsibilities are imposed on staff who are supposed to keep check with the daily and routine operation of internet cafes.

Conclusion

The new Internet Cafe Regulation involve not only specific requirements for setting up internet cafes, but also certifications for cafe proprietors and entry registration for consumers. MOC (Ministry of Culture) is in charge of internet cafes and relevant service providers who trade network news, videos, internet games and other net-based entertainments through the cyber-technology. In addition, MOC will also take initiative to join other government administrations in developing professional software to safeguard China's internet services. All efforts will keep the task force on one hand more capable to take care of technological development and to come in response to public safety as well.

References

Acting Secretary for Home Affairs, Mr. Michael Suen's reply to Hon. Tsang Yuk-sing in the Legislative Council on July 10, 2002, available at http://www.info.gov.hk/gia/general/200207/10/0710157.htm.

"China and The Internet Essential Legislation" 2001, Baker & Mckenzie

"Cybercafes, surfers welcome curbs that don't stifle" http://www.mycert.mimos.my/newscutting/

Digital Freedom Network (November 7,2000). "China Regulates Online News and Chats."

Director of Fire Services' reply to written/supplementary question on March 20, 2002, as released on http://www.info.gov.hk/hkfsd/english/notice/fcm/SB087.doc

Internet Cafe Regulation: PRC and Hong Kong Perspectives by Jeffery Yunan Ren and Wesley Chiu http://www.perkinsoie.com

"Internet Law in Hong Kong" 2003/5/4, Allen & Overy.

Ming Pao (January 2002 - April 2003 ).

People's Daily, http://english.peopledaily.com.cn/

South China Morning Post (Oct 12,2002). "Internet cafe owners say new rules already in place."

South China Morning Post (August 14, 2002). "Ban on setting up cyber-cafes looms."

South China Morning Post (August 2, 2002). "McDonald's fills appetite for Web-surfing with free access."

Times News Network. "Cyber porn surfers could be caught in a legal web."

http://www.legco.gov.hk/yr01-02/english/panels/ha/papers/ha0712cb2-2549-2e.pdf.

香港小童群益會http://www.bgca.org.hk/

聖匠堂社區中心http://www.holycarpenter.org/

民建聯http://www.dab.org.hk

政府新聞網http://www.legco.gov.hk01-02/english/panels/ha/papers/ha0712cb2-2549-2e.pdf

http://www.info.gov.hk/gia/general/200201/10/0710157.htm