Wang Xin, former CEO of Shenzhen QVOD Technology Co Ltd, and three other executives were convicted of spreading pornography for profit and were sentenced Tuesday to up to three and a half years in prison, a Beijing court said.
Wang was sentenced to three and a half years in prison and was fined 1 million yuan ($149,254), according to the Haidian District People's Court. The other three executives of online video service QVOD —Zhang Kedong, Wu Ming and Niu Wenju - were handed prison terms of up to three years and three months and must pay fines up to 500,000 yuan each. The company was additionally fined 10 million yuan, according to the court.
Founded in 2007, QVOD is a peer-to-peer video streaming site with around 300 million users.
QVOD is accused of spreading a large amount of pornography and pirated content through its video player and of using such content to generate substantial income by charging users and advertisers, the Xinhua News Agency reported.
According to the Haidian District People's Procuratorate, 21,521 of 29,841 files that police obtained from three servers used by QVOD in 2013 were pornographic, Xinhua said.
During the first trial in January, the defendants denied all the charges.
In Friday's trial, prosecutors alleged the obscene content increased the number of QVOD's users and its profits.
"Our company's revenue is based on user numbers," admitted defendant Zhang.
"Faced with the choice between social responsibility and company interests, I chose the latter," said Wang, showing remorse for his actions.
"Spreading obscene content on the Internet did harm to others, especially adolescents. Not only have I broken the law, but I have also neglected my duty," said Wang.
In 2013, the company's business division posted revenue exceeding 140 million yuan, according to the procuratorate.
According to China's Criminal Law, those producing, reproducing, publishing, selling or disseminating obscene materials with the purpose of making profits should be sentenced to three years or less in prison or be placed under criminal detention or surveillance, in addition to being fined. If the case is serious, offenders should be sentenced to three to 10 years in prison in addition to having to pay a fine.
