User Scale and Utilization Ratio of Internet Literature /Mobile Internet Literature Dec. 2015 – Dec. 2016 10,000persons 40000 43.1% 45.6% 50% 43.7% 40% 30000 41.8% 33319 29674 30377 25908 30% 20000 20% 10000 10% 0 0% 2015.12 2016.12 Number of users of Internet literature Number of users of mobile Internet literature Utilization ratio of Internet literature (by all Internet users) Utilization ratio of mobile Internet literature (by all mobile Internet users) Source: Statistical Survey on Internet Development in China 2016.12 Figure 62 User Scale and Utilization Ratio of Internet Literature /Mobile Internet Literature Dec. 2015 – Dec. 2016 In 2016, the online literature industry embarked on the track of sound development, as shown in the following two aspects. First, the piracy of online literature hindering the industrial development in a long term was effectively cracked down on, significantly improving the copyright environment; second, the business model of online literature was transformed from one-time sale to sustained content development as a way to conduct more cross-border cooperation. The piracy of online literature was fought by related departments in 2016, with the awareness of intellectual property protection inside the industry coming into being. In January, Yuewen Group established a “Copyright Alliance”, announcing that it has contained the illegal spreading of 40,000 copyrighted works, and filed 193 lawsuits of right protection and succeeded in them. In May, Baidu Tieba rectified the online literature infringement on a large scale, closing a large number of post bars relating to online literature works and deleting infringing content. In July, the “Sword Network 2016” campaign was jointly initiated by the Cyberspace Administration of China, the Ministry of Public Security and other related departments, which aimed at putting more efforts to combat piracy against online literature. The corresponding system of black and 74 white lists was established. The 39th Statistical Report on Internet Development in China

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