On February 18, 2012, China and the United States finally entered into a memorandum of understanding (MOU) with regard to film issues under WTO dispute settlement procedures (WT/DS363 China-Publications). According to the MOU, China will allow the importation of 14 enhanced format (e.g. 3D or IMAX) revenue-sharing films per year from the U.S in addition to the 20 revenue-sharing films quota under the WTO. The MOU also provides for the revenue sharing ratio of U.S. studios to be increased to 25% of gross box office receipts per one revenue-sharing film. JT&N’s legal team led by Stephen Peng represented the Government of China in the “tug-of-war” negotiation.