We have licensed our games to leading game operators in a number of countries and regions in Asia, Europe and South America. Under our license agreements, we allow our overseas licensees to exclusively operate, promote, service and distribute our games in specified territories. In return, we are generally entitled to an initial fee and ongoing royalties, the latter of which is generally determined based on the amount of money charged to players' accounts or the services fees payable by the players to the licensee in a specific country or region. The licensees are responsible for the sales and marketing of our games in the specified territories, including setting the price of our games and virtual items, and usually there are minimum requirements on promotion expenditures. The licensees are also generally in charge of maintenance of the network infrastructure and customer service. We are responsible for the technical support for the operation of our games, including providing technical tools for the localization of our games. We generally agree to provide our licensees with updates or upgrades to the licensed games, usually every three to six months or on a when-and-if-available basis. We also usually assist the licensee in preventing, detecting and resolving hacking and cheating activities.
We plan to further license Perfect World II, Legend of Martial Arts, Zhu Xian, Chi Bi, Hot Dance Party and other games to leading online game operators in additional countries and regions to expand the geographical presence of our games, including Southeast Asia, Europe and South America. All of Perfect World II, Legend of Martial Arts, Zhu Xian and Chi Bi use an item-based revenue model. Our games offer differentiated in-game items in different territories, e.g., kimonos offered in Japan. The licensees determine the pricing of in-game items based on the local market conditions as well as our input.
The following table lists certain information with respect to the licenses that we have entered into for Perfect World II.
|
Country/Region |
Licensee |
Date of
license agreement |
Date of
commercial launch |
Expiry date |
Taiwan,
Hong Kong
and Macau | Soft-World International Corporation | June 15, 2006 |
December
2006 |
Three years from commercial launch |
Japan | C&C Media Co., Ltd. | July 29, 2006 |
April 2007 |
Five years from commercial launch |
Vietnam | Quang Minh DEC | August 25,
2006 |
February 2007 |
Three years from commercial launch |
Malaysia and Singapore | Cubinet Interactive
Sdn Bhd | December 28,
2006 |
March 2007 |
Five years from commercial launch |
Korea | CJ Internet Corporation | December 12,
2006 |
October 2007 |
Five years from commercial launch |
The Philippines | Level Up!
Inc. | December 12,
2006 |
July 2007 |
Five years from commercial launch |
Thailand | Cubinet Interactive
Sdn Bhd | June 20, 2007 |
January 2008 |
Three years from commercial launch |
Brazil | Level Up! Interactive S.A. | December 14,
2006 |
May 2008 |
Five years from commercial launch |
Indonesia | PT. LYTO Datarindo Fortuna. of Indonesia | August 31,
2007 |
August 2008 |
Three years from commercial launch |
Russia
Federation and other Russian speaking territories | Nival Online LLC | August 31,
2007 |
June 2008 |
August 2011 |
Europe ( Around forty European countries and regions) | Games-Masters.com Ltd |
July 24, 2008
| N/A |
Three years from commercial launch of each language version |
The following table lists certain information with respect to the licenses that we have entered into for Legend of Martial Arts.
|
Country/Region
| Licensee | Date of
license
agreement | Date of
commercial launch | Expiry date |
Taiwan, Hong Kong and Macau | Soft-World International Corporation | June 25, 2007 | November 2007 | Three years from commercial launch |
Japan | C&C Media Co., Ltd. | June 29, 2007 | February 2008 | Three years from commercial launch |
Malaysia and Singapore | Cubinet Interactive(s) Pte. Ltd. | June 29, 2007 | March 2008 | Three years from commercial launch |
Thailand | Cubinet Interactive(s) Pte. Ltd. | June 29,
2007 | October 2008 | Three years from commercial launch |
Vietnam | Cubinet Interactive(s) Pte. Ltd. | January 30,
2008 | N/A | Three years from commercial launch |
Korea | EYA Interactive Co., Ltd. | September 18, 2008 | N/A | Three years from commercial launch |
The following table lists certain information with respect to the licenses that we have entered into for Zhu Xian.
|
Country/Region
| Licensee | Date of
license
agreement | Date of
commercial launch | Expiry date |
Malaysia and Singapore | Cubinet Interactive(s) Pte. Ltd. | January 30,
2008 | N/A | Three years from commercial launch |
Thailand | Cubinet Interactive(s) Pte. Ltd. | January 30,
2008 | N/A | Three years from commercial launch |
Vietnam | Cubinet Interactive(s) Pte. Ltd. | January 30,
2008 | N/A | Three years from commercial launch |
Taiwan,
Hong Kong
and Macau | Soft-World International Corporation | April 5, 2008 | June 2008 | Three years from commercial launch |
Japan | C&C Media Co., Ltd. | April 5, 2008 | November 2008 | Three years from commercial launch |
The Philippines | IP E-Game Ventures Inc. | June 12, 2008 | N/A | Four years from commercial launch |
The following table lists certain information with respect to the licenses that we have entered into for Chi Bi.
|
Country/Region
| Licensee | Date of
license
agreement | Date of
commercial launch | Expiry date |
Taiwan | Taiwan Index Corporation Ltd. | June 4, 2008 | September 2008 | Three years from commercial launch |
Hong Kong and Macau | Gamania Digital Entertainment (H.K.) Co., Ltd. | June 4, 2008 | September 2008 | Three years from commercial launch |
Vietnam, Thailand, Malaysia and Singapore | Cubinet Interactive(s) Pte. Ltd. | May 30, 2008 | August 2008 (Malaysia & Singapore) | Three years from commercial launch of each language version |
Japan | C&C Media Co., Ltd. | October 27, 2008 | N/A | Three years from commercial launch |
The following table lists certain information with respect to the licenses that we have entered into for Hot Dance Party.
|
Country/Region
| Licensee | Date of
license
agreement | Date of
commercial launch | Expiry date |
Malaysia, Singapore, Thailand and Vietnam | Cubinet Interactive(s) Pte. Ltd. | August 10, 2008 | N/A | Three years from commercial launch |
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