The company, which only broke even when the series turned into a runaway hit, is now spending tons of money chasing pirates. It has been guerilla warfare. Bootleggers do not usually register their business. When they are caught, the court generally gives them a slap on the wrist, to the tune of a 10,000-50,000 yuan fine.
"It is such a weak deterrent that in one case we had to retroactively grant a license to the offender," complains Liu.
If Liu's company is suffering, just imagine what the remaining 6,000 firms in the Guangdong creative industry are going through.
In case you don't know, China produces the largest amount of animated programming in the world. But quantity is not quality. Behind every Pleasant Goat there are tens of thousands of flops.
This year China is expected to amass a total of 130,000 minutes of domestically produced animation programs, but it's doubtful whether this is worth one Kungfu Panda, the animated movie released by DreamWorks.
Rolf Gesen, a Berlin-based film archivist who teaches at Beijing Communication University, attributes the failure to students who are too obsessed with technology and influenced by Japanese anime.
"(The animations) are just like junk food," he laments, "without roots in their own culture or emotional exchange ... the roles tend to be wooden, which makes it difficult for audiences, domestic or international, to identify with."
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